TSMC (TSM - Free Report) closed at $49.80 in the latest trading session, marking a -1.87% move from the prior day. This change lagged the S&P 500's daily gain of 0.24%. Meanwhile, the Dow lost 0.04%, and the Nasdaq, a tech-heavy index, added 0.43%.
Wall Street will be looking for positivity from TSM as it approaches its next earnings report date. The company is expected to report EPS of $0.73, up 78.05% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $10.36 billion, up 33.72% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.80 per share and revenue of $46.17 billion. These totals would mark changes of +30.23% and +33.31%, respectively, from last year.
It is also important to note the 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.64% higher. TSM is holding a Zacks Rank of #1 (Strong Buy) right now.
Looking at its valuation, TSM is holding a Forward P/E ratio of 18.16. Its industry sports an average Forward P/E of 18.16, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.
We can also see that TSM currently has a PEG ratio of 1.09. 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 was holding an average PEG ratio of 1.09 at yesterday's closing price.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 1, putting it in the top 1% 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.