In the latest trading session, TSMC (TSM) closed at $176.24, marking a +1.23% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.64%. Meanwhile, the Dow gained 0.85%, and the Nasdaq, a tech-heavy index, added 0.31%.
The chip company's stock has dropped by 14.62% in the past month, falling short of the Computer and Technology sector's loss of 11.22% and the S&P 500's loss of 7.69%.
The upcoming earnings release of TSMC will be of great interest to investors. The company's upcoming EPS is projected at $2.02, signifying a 46.38% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $25.2 billion, showing a 33.55% escalation compared to the year-ago quarter.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $9.15 per share and revenue of $113.51 billion. These results would represent year-over-year changes of +29.97% and +26%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for TSMC. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.48% lower within the past month. TSMC is currently a Zacks Rank #3 (Hold).
With respect to valuation, TSMC is currently being traded at a Forward P/E ratio of 19.02. This denotes no noticeable deviation relative to the industry's average Forward P/E of 19.02.
We can also see that TSM currently has a PEG ratio of 0.6. 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. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 0.6.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow TSM in the coming trading sessions, be sure to utilize 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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