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TSMC (TSM) Dips More Than Broader Markets: What You Should Know
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TSMC (TSM - Free Report) closed at $92.53 in the latest trading session, marking a -1.79% move from the prior day. This move lagged the S&P 500's daily loss of 1.35%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.87%.
Heading into today, shares of the chip company had lost 5.22% over the past month, lagging the Computer and Technology sector's loss of 0.82% and the S&P 500's loss of 2.06% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. On that day, TSMC is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 35.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 17.75% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $66.05 billion. These results would represent year-over-year changes of -26.48% and -12.96%, respectively.
It is also important to note the recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 19.49 right now. For comparison, its industry has an average Forward P/E of 19.49, which means TSMC is trading at a no noticeable deviation to the group.
Meanwhile, TSM's PEG ratio is currently 3.27. 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. TSM's industry had an average PEG ratio of 3.27 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 245, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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TSMC (TSM) Dips More Than Broader Markets: What You Should Know
TSMC (TSM - Free Report) closed at $92.53 in the latest trading session, marking a -1.79% move from the prior day. This move lagged the S&P 500's daily loss of 1.35%. Elsewhere, the Dow lost 1.08%, while the tech-heavy Nasdaq lost 1.87%.
Heading into today, shares of the chip company had lost 5.22% over the past month, lagging the Computer and Technology sector's loss of 0.82% and the S&P 500's loss of 2.06% in that time.
Wall Street will be looking for positivity from TSMC as it approaches its next earnings report date. On that day, TSMC is projected to report earnings of $1.16 per share, which would represent a year-over-year decline of 35.2%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $16.64 billion, down 17.75% from the year-ago period.
TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.83 per share and revenue of $66.05 billion. These results would represent year-over-year changes of -26.48% and -12.96%, respectively.
It is also important to note the recent changes to analyst estimates for TSMC. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.23% lower. TSMC is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 19.49 right now. For comparison, its industry has an average Forward P/E of 19.49, which means TSMC is trading at a no noticeable deviation to the group.
Meanwhile, TSM's PEG ratio is currently 3.27. 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. TSM's industry had an average PEG ratio of 3.27 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 245, putting it in the bottom 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.
You can find more information on all of these metrics, and much more, on Zacks.com.