In the latest market close, TSMC (TSM) reached $177.10, with a +0.71% movement compared to the previous day. The stock outpaced the S&P 500's daily gain of 0.55%. Elsewhere, the Dow gained 0.52%, while the tech-heavy Nasdaq added 0.7%.
The chip company's stock has dropped by 16.46% in the past month, falling short of the Computer and Technology sector's loss of 8.51% and the S&P 500's loss of 5.56%.
The upcoming earnings release of TSMC will be of great interest to investors. The company's upcoming EPS is projected at $2.03, signifying a 47.1% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.25 billion, showing a 33.77% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $9.20 per share and a revenue of $113.63 billion, demonstrating changes of +30.68% and +26.14%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.07% rise in the Zacks Consensus EPS estimate. TSMC presently features a Zacks Rank of #2 (Buy).
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 19.12. Its industry sports an average Forward P/E of 19.12, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
It is also worth noting that TSM currently has a PEG ratio of 0.58. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Circuit Foundry industry had an average PEG ratio of 0.58 as trading concluded yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 5, positioning it in the top 2% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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