TSMC (TSM) closed the most recent trading day at $410.12, moving -2.11% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a gain of 0.26%, and the technology-centric Nasdaq decreased by 0.77%.
Shares of the chip company witnessed a gain of 3.85% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.04%, and the S&P 500's gain of 2.31%.
Investors will be eagerly watching for the performance of TSMC in its upcoming earnings disclosure. The company is predicted to post an EPS of $4.45, indicating a 52.4% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $45.54 billion, indicating a 37.6% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.45 per share and a revenue of $166.12 billion, representing changes of +54.46% and +35.69%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TSMC. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.67% increase. At present, TSMC boasts a Zacks Rank of #1 (Strong Buy).
In terms of valuation, TSMC is presently being traded at a Forward P/E ratio of 25.48. Its industry sports an average Forward P/E of 25.48, so one might conclude that TSMC is trading at no noticeable deviation comparatively.
Meanwhile, TSM's PEG ratio is currently 0.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. TSM's industry had an average PEG ratio of 0.96 as of yesterday's close.
The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 1, positioning it in the top 1% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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.
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This article originally published on Zacks Investment Research (zacks.com).