TSMC (TSM - Free Report) closed at $78.90 in the latest trading session, marking a -0.63% move from the prior day. This change was narrower than the S&P 500's 1.76% loss on the day. Elsewhere, the Dow lost 1.45%, while the tech-heavy Nasdaq lost 1.99%.
Prior to today's trading, shares of the chip company had gained 0.01% over the past month. This has lagged the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 1.56% in that time.
Wall Street will be looking for positivity from TSM as it approaches its next earnings report date. The company is expected to report EPS of $0.81, up 30.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $11.45 billion, up 21.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $43.59 billion. These totals would mark changes of +46.05% and +25.86%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for TSM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM is currently sporting a Zacks Rank of #2 (Buy).
Investors should also note TSM's current valuation metrics, including its Forward P/E ratio of 25.33. For comparison, its industry has an average Forward P/E of 25.33, which means TSM is trading at a no noticeable deviation to the group.
Investors should also note that TSM has a PEG ratio of 1.28 right now. 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. TSM's industry had an average PEG ratio of 1.28 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 7, which puts it in the top 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.