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Why TSMC (TSM) Dipped More Than Broader Market Today
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TSMC (TSM - Free Report) closed the most recent trading day at $169.07, moving -1.29% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.85%.
Heading into today, shares of the chip company had gained 5.77% over the past month, outpacing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.52% in that time.
The upcoming earnings release of TSMC will be of great interest to investors. On that day, TSMC is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 33.33%. Simultaneously, our latest consensus estimate expects the revenue to be $22.72 billion, showing a 31.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.45 per share and a revenue of $85.62 billion, demonstrating changes of +24.52% and +23.55%, respectively, from the preceding year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% increase. TSMC is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 26.56. Its industry sports an average Forward P/E of 26.56, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
It's also important to note that TSM currently trades at a PEG ratio of 1. 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. The average PEG ratio for the Semiconductor - Circuit Foundry industry stood at 1 at the close of the market yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 1, finds itself in the top 1% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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Why TSMC (TSM) Dipped More Than Broader Market Today
TSMC (TSM - Free Report) closed the most recent trading day at $169.07, moving -1.29% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.85%.
Heading into today, shares of the chip company had gained 5.77% over the past month, outpacing the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.52% in that time.
The upcoming earnings release of TSMC will be of great interest to investors. On that day, TSMC is projected to report earnings of $1.72 per share, which would represent year-over-year growth of 33.33%. Simultaneously, our latest consensus estimate expects the revenue to be $22.72 billion, showing a 31.48% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $6.45 per share and a revenue of $85.62 billion, demonstrating changes of +24.52% and +23.55%, respectively, from the preceding year.
Any recent changes to analyst estimates for TSMC should also be noted by investors. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.22% increase. TSMC is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 26.56. Its industry sports an average Forward P/E of 26.56, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
It's also important to note that TSM currently trades at a PEG ratio of 1. 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. The average PEG ratio for the Semiconductor - Circuit Foundry industry stood at 1 at the close of the market yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 1, finds itself in the top 1% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.