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TSMC (TSM) Stock Moves -0.06%: What You Should Know

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In the latest trading session, TSMC (TSM - Free Report) closed at $47.79, marking a -0.06% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.6%. At the same time, the Dow lost 1.84%, and the tech-heavy Nasdaq lost 0.95%.

Heading into today, shares of the chip company had lost 14.58% over the past month, lagging the Computer and Technology sector's loss of 9.68% and the S&P 500's loss of 10.82% in that time.

TSM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TSM to post earnings of $0.75 per share. This would mark year-over-year growth of 97.37%.

Investors should also note any recent changes to analyst estimates for TSM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.52% lower. TSM currently has a Zacks Rank of #4 (Sell).

In terms of valuation, TSM is currently trading at a Forward P/E ratio of 18.53. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 18.53.

Meanwhile, TSM's PEG ratio is currently 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Semiconductor - Circuit Foundry industry currently had an average PEG ratio of 1.42 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 247, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.


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