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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 $296.95, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.57%.
The chip company's stock has climbed by 3.04% in the past month, falling short of the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.
The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 21.43% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $32.6 billion, up 21.26% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.19 per share and revenue of $121 billion. These totals would mark changes of +44.74% and +34.32%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. At present, TSMC boasts a Zacks Rank of #3 (Hold).
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 28.8. Its industry sports an average Forward P/E of 28.8, 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 Semiconductor - Circuit Foundry industry had an average PEG ratio of 1 as trading concluded yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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TSMC (TSM) Beats Stock Market Upswing: What Investors Need to Know
TSMC (TSM - Free Report) closed the most recent trading day at $296.95, moving +1.25% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.57%.
The chip company's stock has climbed by 3.04% in the past month, falling short of the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.
The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $2.72, reflecting a 21.43% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $32.6 billion, up 21.26% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.19 per share and revenue of $121 billion. These totals would mark changes of +44.74% and +34.32%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.15% lower. At present, TSMC boasts a Zacks Rank of #3 (Hold).
Investors should also note TSMC's current valuation metrics, including its Forward P/E ratio of 28.8. Its industry sports an average Forward P/E of 28.8, 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 Semiconductor - Circuit Foundry industry had an average PEG ratio of 1 as trading concluded yesterday.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 102, which puts it in the top 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.