TSMC (TSM) closed the most recent trading day at $118.30, moving -1.89% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.1%. At the same time, the Dow added 0.9%, and the tech-heavy Nasdaq lost 0.59%.
Coming into today, shares of the chip company had lost 13.35% in the past month. In that same time, the Computer and Technology sector lost 5.38%, while the S&P 500 gained 0.71%.
TSM will be looking to display strength as it nears its next earnings release. In that report, analysts expect TSM to post earnings of $0.91 per share. This would mark year-over-year growth of 21.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.83 billion, up 24.47% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.01 per share and revenue of $55.21 billion, which would represent changes of +18.29% and +21.33%, respectively, from the prior 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 such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. TSM currently has a Zacks Rank of #3 (Hold).
Investors should also note TSM’s current valuation metrics, including its Forward P/E ratio of 30.07. For comparison, its industry has an average Forward P/E of 30.07, which means TSM is trading at a no noticeable deviation to the group.
Investors should also note that TSM has a PEG ratio of 1.17 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 was holding an average PEG ratio of 1.17 at yesterday’s closing price.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 120, which puts it in the top 48% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.