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TSMC (TSM) Falls More Steeply Than Broader Market: What Investors Need to Know
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TSMC (TSM - Free Report) closed the most recent trading day at $432.57, moving -4.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
The chip company's shares have seen an increase of 5.86% over the last month, surpassing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is slated to reveal its earnings on July 16, 2026. The company is predicted to post an EPS of $3.77, indicating a 52.63% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $39.76 billion, indicating a 32.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $15.35 per share and a revenue of $161.91 billion, demonstrating changes of +44.13% and +32.26%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has shifted 0.36% upward. TSMC presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 29.43. For comparison, its industry has an average Forward P/E of 29.43, which means TSMC is trading at no noticeable deviation to the group.
Also, we should mention that TSM has a PEG ratio of 1.14. 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. As the market closed yesterday, the Semiconductor - Circuit Foundry industry was having an average PEG ratio of 1.14.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
View the Zacks #1 Rank List
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TSMC (TSM) Falls More Steeply Than Broader Market: What Investors Need to Know
TSMC (TSM - Free Report) closed the most recent trading day at $432.57, moving -4.25% from the previous trading session. This move lagged the S&P 500's daily loss of 0.45%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 1.16%.
The chip company's shares have seen an increase of 5.86% over the last month, surpassing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is slated to reveal its earnings on July 16, 2026. The company is predicted to post an EPS of $3.77, indicating a 52.63% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $39.76 billion, indicating a 32.23% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $15.35 per share and a revenue of $161.91 billion, demonstrating changes of +44.13% and +32.26%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 has shifted 0.36% upward. TSMC presently features a Zacks Rank of #2 (Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 29.43. For comparison, its industry has an average Forward P/E of 29.43, which means TSMC is trading at no noticeable deviation to the group.
Also, we should mention that TSM has a PEG ratio of 1.14. 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. As the market closed yesterday, the Semiconductor - Circuit Foundry industry was having an average PEG ratio of 1.14.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 5, finds itself in the top 3% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.