In the latest trading session, TSMC (TSM) closed at $197.61, marking a +1.42% move from the previous day. The stock’s change was more than the S&P 500’s daily gain of 0.58%. Elsewhere, the Dow saw an upswing of 0.51%, while the tech-heavy Nasdaq appreciated by 0.81%.
Heading into today, shares of the chip company had gained 10.45% over the past month, outpacing the Computer and Technology sector’s gain of 7.05% and the S&P 500’s gain of 4.61% in that time.
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The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is expected to report EPS of $2.29, up 54.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $29.66 billion, up 42.47% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $9.19 per share and a revenue of $115.46 billion, demonstrating changes of +30.54% and +28.17%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there’s been a 2.09% rise in the Zacks Consensus EPS estimate. TSMC is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note TSMC’s current valuation metrics, including its Forward P/E ratio of 21.2. This expresses no noticeable deviation compared to the average Forward P/E of 21.2 of its industry.
It’s also important to note that TSM currently trades at a PEG ratio of 1.02. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. As of the close of trade yesterday, the Semiconductor – Circuit Foundry industry held an average PEG ratio of 1.02.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 91, positioning it in the top 37% of all 250+ industries.
