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TSMC (TSM) Dips More Than Broader Markets: What You Should Know

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TSMC (TSM - Free Report) closed the most recent trading day at $103.56, moving -0.45% from the previous trading session. This move lagged the S&P 500's daily loss of 0.44%. Elsewhere, the Dow lost 0.62%, while the tech-heavy Nasdaq added 0.5%.

Coming into today, shares of the chip company had gained 15.82% in the past month. In that same time, the Computer and Technology sector gained 4.57%, while the S&P 500 gained 2.71%.

Wall Street will be looking for positivity from TSM as it approaches its next earnings report date. On that day, TSM is projected to report earnings of $0.92 per share, which would represent year-over-year growth of 26.03%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.90 billion, up 24.1% from the year-ago period.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $3.48 per share and revenue of $47.82 billion. These results would represent year-over-year changes of +61.86% and +38.07%, respectively.

Any recent changes to analyst estimates for TSM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant within the past month. TSM currently has a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TSM has a Forward P/E ratio of 29.94 right now. Its industry sports an average Forward P/E of 29.94, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.

Also, we should mention that TSM has a PEG ratio of 1.4. 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. Semiconductor - Circuit Foundry stocks are, on average, holding a PEG ratio of 1.4 based on yesterday's closing prices.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 8, which puts it in the top 4% 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.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.


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