In the latest trading session, TSMC (TSM) closed at $345.98, marking a +1.69% move from the previous day. The stock outpaced the S&P 500’s daily gain of 0.25%. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.47%.
Heading into today, shares of the chip company had lost 7.13% over the past month, lagging the Computer and Technology sector’s loss of 0.87% and the S&P 500’s loss of 1.88%.
Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $3.27, reflecting a 54.25% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $35.4 billion, indicating a 38.67% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $14.37 per share and a revenue of $160 billion, representing changes of +34.93% and +30.69%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.63% higher. At present, TSMC boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 23.68. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 23.68.
Meanwhile, TSM’s PEG ratio is currently 0.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The Semiconductor – Circuit Foundry was holding an average PEG ratio of 0.93 at yesterday’s closing price.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons of all 250+ industries.
