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TSMC (TSM) Stock Moves -0.26%: What You Should Know

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TSMC (TSM - Free Report) closed the most recent trading day at $76.10, moving -0.26% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.9%. At the same time, the Dow lost 0.5%, and the tech-heavy Nasdaq lost 0.27%.

Coming into today, shares of the chip company had lost 7.26% in the past month. In that same time, the Computer and Technology sector lost 4.11%, while the S&P 500 lost 2.66%.

Investors will be hoping for strength from TSMC as it approaches 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, our latest consensus estimate is calling for revenue of $20.29 billion, up 28.96% from the prior-year quarter.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $6.34 per share and revenue of $72.3 billion. These results would represent year-over-year changes of +53.88% and +27.25%, respectively.

Any recent changes to analyst estimates for TSMC should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.28% higher within the past month. TSMC is currently sporting a Zacks Rank of #2 (Buy).

Looking at its valuation, TSMC is holding a Forward P/E ratio of 12.03. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 12.03.

Meanwhile, TSM's PEG ratio is currently 0.56. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 0.56 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 8, putting it in the top 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks 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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