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TSMC (TSM) Beats Stock Market Upswing: What Investors Need to Know

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TSMC (TSM - Free Report) closed the most recent trading day at $215.68, moving +2.17% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.94%. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.

The chip company's stock has climbed by 8.69% in the past month, exceeding the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 1.67%.

The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. It is anticipated that the company will report an EPS of $2.32, marking a 56.76% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $30.05 billion, showing a 44.32% escalation compared to the year-ago quarter.

For the full year, the Zacks Consensus Estimates project earnings of $9.28 per share and a revenue of $116.93 billion, demonstrating changes of +31.82% and +29.8%, respectively, from the preceding year.

Investors should also take note of any recent adjustments to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.94% rise in the Zacks Consensus EPS estimate. Currently, TSMC is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, TSMC is holding a Forward P/E ratio of 22.76. This denotes no noticeable deviation relative to the industry average Forward P/E of 22.76.

One should further note that TSM currently holds a PEG ratio of 1.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 1.09 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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