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TSMC (TSM) Gains But Lags Market: What You Should Know
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In the latest trading session, TSMC (TSM - Free Report) closed at $80.51, marking a +0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the chip company had gained 10.48% in the past month. In that same time, the Computer and Technology sector lost 0.58%, while the S&P 500 gained 0.09%.
TSMC will be looking to display strength as it nears its next earnings release. On that day, TSMC is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 54.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.29 billion, up 28.96% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $72.3 billion, which would represent changes of +53.88% and +27.25%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 1.28% higher within the past month. TSMC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 12.69. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.69.
Also, we should mention that TSM has a PEG ratio of 0.59. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 0.59 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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TSMC (TSM) Gains But Lags Market: What You Should Know
In the latest trading session, TSMC (TSM - Free Report) closed at $80.51, marking a +0.1% move from the previous day. This move lagged the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 0.01%.
Coming into today, shares of the chip company had gained 10.48% in the past month. In that same time, the Computer and Technology sector lost 0.58%, while the S&P 500 gained 0.09%.
TSMC will be looking to display strength as it nears its next earnings release. On that day, TSMC is projected to report earnings of $1.78 per share, which would represent year-over-year growth of 54.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $20.29 billion, up 28.96% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.34 per share and revenue of $72.3 billion, which would represent changes of +53.88% and +27.25%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 1.28% higher within the past month. TSMC currently has a Zacks Rank of #3 (Hold).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 12.69. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.69.
Also, we should mention that TSM has a PEG ratio of 0.59. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 0.59 based on yesterday's closing prices.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 93, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.