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TSMC (TSM) Surpasses Market Returns: Some Facts Worth Knowing

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In the latest market close, TSMC (TSM - Free Report) reached $129.53, with a +0.36% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.04%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.28%.

Heading into today, shares of the chip company had gained 10.73% over the past month, outpacing the Computer and Technology sector's gain of 4.78% and the S&P 500's gain of 5.01% in that time.

Market participants will be closely following the financial results of TSMC in its upcoming release. It is anticipated that the company will report an EPS of $1.29, marking a 1.53% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.38 billion, up 9.96% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $6.18 per share and a revenue of $85.41 billion, signifying shifts of +19.31% and +23.24%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for TSMC. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. TSMC currently has a Zacks Rank of #3 (Hold).

Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 20.89. This signifies no noticeable deviation in comparison to the average Forward P/E of 20.89 for its industry.

Investors should also note that TSM has a PEG ratio of 2.91 right now. 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. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 2.91.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 42% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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