TSMC (TSM) closed at $94.78 in the latest trading session, marking a -0.32% move from the prior day. This change lagged the S&P 500's daily gain of 0.38%. At the same time, the Dow added 0.11%, and the tech-heavy Nasdaq gained 0.54%.
Heading into today, shares of the chip company had lost 3.37% over the past month, lagging the Computer and Technology sector's loss of 2.51% and the S&P 500's loss of 1.68% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 17.75% from the year-ago period.
Investors should also note any recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.43% lower. TSMC currently has a Zacks Rank of #4 (Sell).
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.71. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 19.71.
It is also worth noting that TSM currently has a PEG ratio of 3.3. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 3.3 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 246, which puts it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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