Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest close session, TSMC (TSM - Free Report) was up +1.04% at $345.32. The stock's performance was ahead of the S&P 500's daily gain of 0.08%. Elsewhere, the Dow saw a downswing of 0.18%, while the tech-heavy Nasdaq appreciated by 0.1%.

The stock of chip company has fallen by 1.99% in the past month, leading the Computer and Technology sector's loss of 2.82% and undershooting the S&P 500's loss of 1.74%.

Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. The company's earnings report is set to go public on April 16, 2026. The company is expected to report EPS of $3.29, up 55.19% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $35.5 billion, indicating a 39.06% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $14.44 per share and a revenue of $160.67 billion, signifying shifts of +35.59% and +31.24%, respectively, from the last year.

Investors should also pay attention to any latest changes in analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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. Within the past 30 days, our consensus EPS projection has moved 0.54% higher. TSMC currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TSMC currently has a Forward P/E ratio of 23.67. Its industry sports an average Forward P/E of 23.67, so one might conclude that TSMC is trading at no noticeable deviation comparatively.

We can additionally observe that TSM currently boasts a PEG ratio of 0.93. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 0.93.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 100, positioning it in the top 41% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in