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TSMC (TSM) Exceeds Market Returns: Some Facts to Consider
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TSMC (TSM - Free Report) closed the most recent trading day at $472.78, moving +2.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.
The stock of chip company has risen by 10.12% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of TSMC will be of great interest to investors. The company's earnings report is expected on October 15, 2026. The company's upcoming EPS is projected at $4.45, signifying a 52.40% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $45.62 billion, up 37.83% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $16.56 per share and a revenue of $167.92 billion, demonstrating changes of +55.49% and +37.17%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Right now, TSMC possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 27.73. For comparison, its industry has an average Forward P/E of 27.73, which means TSMC is trading at no noticeable deviation to the group.
Investors should also note that TSM has a PEG ratio of 1.02 right now. 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 currently had an average PEG ratio of 1.02 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.
View the Zacks #1 Rank List
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TSMC (TSM) Exceeds Market Returns: Some Facts to Consider
TSMC (TSM - Free Report) closed the most recent trading day at $472.78, moving +2.96% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.73%. At the same time, the Dow added 0.49%, and the tech-heavy Nasdaq gained 1.19%.
The stock of chip company has risen by 10.12% in the past month, leading the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of TSMC will be of great interest to investors. The company's earnings report is expected on October 15, 2026. The company's upcoming EPS is projected at $4.45, signifying a 52.40% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $45.62 billion, up 37.83% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $16.56 per share and a revenue of $167.92 billion, demonstrating changes of +55.49% and +37.17%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for TSMC. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Right now, TSMC possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, TSMC is currently exchanging hands at a Forward P/E ratio of 27.73. For comparison, its industry has an average Forward P/E of 27.73, which means TSMC is trading at no noticeable deviation to the group.
Investors should also note that TSM has a PEG ratio of 1.02 right now. 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 currently had an average PEG ratio of 1.02 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 7, putting it in the top 3% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the 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.