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TSMC (TSM) Advances While Market Declines: Some Information for Investors

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TSMC (TSM - Free Report) ended the recent trading session at $184.51, demonstrating a +1.85% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.96%. On the other hand, the Dow registered a loss of 0.94%, and the technology-centric Nasdaq decreased by 1.18%.

The chip company's stock has climbed by 15.52% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is scheduled to release its earnings on October 17, 2024. In that report, analysts expect TSMC to post earnings of $1.74 per share. This would mark year-over-year growth of 34.88%. Meanwhile, our latest consensus estimate is calling for revenue of $22.72 billion, up 31.48% from the prior-year 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.

Investors might also notice recent changes to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, TSMC boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 28.09 right now. This valuation marks no noticeable deviation compared to its industry's average Forward P/E of 28.09.

One should further note that TSM currently holds a PEG ratio of 1.06. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TSM's industry had an average PEG ratio of 1.06 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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