TSMC (TSM) closed at $428.03 in the latest trading session, marking a -1.68% move from the prior day. The stock’s change was less than the S&P 500’s daily loss of 0.59%. Meanwhile, the Dow experienced a drop of 0.6%, and the technology-dominated Nasdaq saw a decrease of 0.65%.
Shares of the chip company have appreciated by 1.45% over the course of the past month, outperforming the Computer and Technology sector’s loss of 0.02%, and the S&P 500’s loss of 1.37%.
Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. The company’s upcoming EPS is projected at $4.45, signifying a 52.40% increase compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $45.54 billion, up 37.59% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.55 per share and a revenue of $167.09 billion, representing changes of +55.4% and +36.49%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there’s been a 0.64% rise in the Zacks Consensus EPS estimate. TSMC is currently a Zacks Rank #1 (Strong Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 26.31. This represents no noticeable deviation compared to its industry average Forward P/E of 26.31.
We can also see that TSM currently has a PEG ratio of 0.96. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company’s anticipated earnings growth rate. Semiconductor – Circuit Foundry stocks are, on average, holding a PEG ratio of 0.96 based on yesterday’s closing prices.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 1, this industry ranks in the top 1% of all industries, numbering over 250.
