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TSMC (TSM) Outpaces Stock Market Gains: What You Should Know

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TSMC (TSM - Free Report) closed the most recent trading day at $120.23, moving +0.52% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.03%.

Prior to today's trading, shares of the chip company had gained 1.92% over the past month. This has lagged the Computer and Technology sector's gain of 6.22% and the S&P 500's gain of 2.12% in that time.

Wall Street will be looking for positivity from TSM as it approaches its next earnings report date. In that report, analysts expect TSM to post earnings of $0.89 per share. This would mark year-over-year growth of 14.1%. Our most recent consensus estimate is calling for quarterly revenue of $12.96 billion, up 24.83% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $4.07 per share and revenue of $56.56 billion. These totals would mark changes of +20.06% and +24.29%, respectively, from last year.

Any recent changes to analyst estimates for TSM should also be noted by investors. These revisions help to show the ever-changing nature of near-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.

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 remained stagnant within the past month. TSM is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TSM has a Forward P/E ratio of 29.39 right now. This represents a no noticeable deviation compared to its industry's average Forward P/E of 29.39.

Meanwhile, TSM's PEG ratio is currently 1.85. 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. The Semiconductor - Circuit Foundry was holding an average PEG ratio of 1.85 at yesterday's closing price.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 127, putting it in the top 50% 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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