TSMC (TSM) closed at $446.69 in the latest trading session, marking a +2.54% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.13% for the day. At the same time, the Dow added 0.45%, and the tech-heavy Nasdaq gained 0.03%.
Prior to today's trading, shares of the chip company had gained 8.47% lagged the Computer and Technology sector's gain of 11.37% and outpaced the S&P 500's gain of 5.25%.
The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. The company is expected to report EPS of $3.69, up 49.39% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $39.76 billion, up 32.23% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $15.28 per share and revenue of $161.84 billion. These totals would mark changes of +43.47% and +32.19%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for TSMC. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. At present, TSMC boasts a Zacks Rank of #3 (Hold).
Looking at its valuation, TSMC is holding a Forward P/E ratio of 28.51. This valuation marks no noticeable deviation compared to its industry average Forward P/E of 28.51.
It is also worth noting that TSM currently has a PEG ratio of 1.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Circuit Foundry industry held an average PEG ratio of 1.27.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 109, placing it within the top 45% of over 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Taiwan Semiconductor Manufacturing Company Ltd. (TSM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).