TSMC (TSM) Rises As Market Takes a Dip: Key Facts

TSMC (TSM) closed at $354.56 in the latest trading session, marking a +2.15% move from the prior day. The stock outperformed the S&P 500, which registered a daily loss of 0.08%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, added 0.08%.

The chip company's shares have seen a decrease of 4.09% over the last month, not keeping up with the Computer and Technology sector's loss of 2.38% and the S&P 500's loss of 2.16%.

The investment community will be closely monitoring the performance of TSMC in its forthcoming earnings report. The company is forecasted to report an EPS of $3.27, showcasing a 54.25% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $35.4 billion, up 38.67% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $14.38 per share and a revenue of $160 billion, indicating changes of +35.02% and +30.69%, respectively, from the former year.

It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.95% higher. TSMC is currently sporting a Zacks Rank of #1 (Strong Buy).

Looking at valuation, TSMC is presently trading at a Forward P/E ratio of 24.14. This expresses no noticeable deviation compared to the average Forward P/E of 24.14 of its industry.

It's also important to note that TSM currently trades at a PEG ratio of 0.95. 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. By the end of yesterday's trading, the Semiconductor - Circuit Foundry industry had an average PEG ratio of 0.95.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 1, which puts it in the top 1% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.

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This article originally published on Zacks Investment Research (zacks.com).

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