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

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TSMC (TSM - Free Report) closed at $88.83 in the latest trading session, marking a -0.47% move from the prior day. This change lagged the S&P 500's 0.07% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.01%.

Prior to today's trading, shares of the chip company had lost 2.03% over the past month. This has lagged the Computer and Technology sector's gain of 1.5% and the S&P 500's gain of 0.38% in that time.

TSMC will be looking to display strength as it nears its next earnings release. In that report, analysts expect TSMC to post earnings of $1.15 per share. This would mark a year-over-year decline of 35.75%. Meanwhile, our latest consensus estimate is calling for revenue of $16.64 billion, down 17.75% from the prior-year quarter.

TSM's full-year Zacks Consensus Estimates are calling for earnings of $4.82 per share and revenue of $66.05 billion. These results would represent year-over-year changes of -26.64% and -12.96%, respectively.

Investors should also note any recent changes to analyst estimates for TSMC. 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.

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, 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 has moved 0.21% lower within the past month. TSMC currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, TSMC is holding a Forward P/E ratio of 18.5. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.5.

Investors should also note that TSM has a PEG ratio of 3.1 right now. 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 3.1 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 246, 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.

Be sure to follow all of these stock-moving metrics, and many more, on

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