We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TSMC (TSM) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, TSMC (TSM - Free Report) closed at $114.94, marking a -1.19% move from the previous day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the chip company had lost 6.39% over the past month. This has lagged the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.
TSMC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, up 18.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.1 billion, up 27.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $58.66 billion, which would represent changes of +22.71% and +28.92%, respectively, from the prior year.
Investors should also note any 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSMC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 27.96. This represents a no noticeable deviation compared to its industry's average Forward P/E of 27.96.
It is also worth noting that TSM currently has a PEG ratio of 1.74. 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 1.74 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 115, putting it in the top 46% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TSMC (TSM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, TSMC (TSM - Free Report) closed at $114.94, marking a -1.19% move from the previous day. This change lagged the S&P 500's 1.14% loss on the day. Meanwhile, the Dow lost 1.23%, and the Nasdaq, a tech-heavy index, lost 0.36%.
Prior to today's trading, shares of the chip company had lost 6.39% over the past month. This has lagged the Computer and Technology sector's loss of 4.36% and the S&P 500's loss of 1.37% in that time.
TSMC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.15, up 18.56% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $16.1 billion, up 27.01% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.16 per share and revenue of $58.66 billion, which would represent changes of +22.71% and +28.92%, respectively, from the prior year.
Investors should also note any 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSMC currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 27.96. This represents a no noticeable deviation compared to its industry's average Forward P/E of 27.96.
It is also worth noting that TSM currently has a PEG ratio of 1.74. 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 1.74 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 115, putting it in the top 46% 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.
To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.