June 17, 2024


Super Technology

TSMC (TSM) Gains But Lags Market: What You Should Know

In the latest trading session, TSMC (TSM) closed at $120.79, marking a +0.27% move from the previous day. This move lagged the S&P 500’s daily gain of 0.28%.


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Coming into today, shares of the chip company had gained 1.45% in the past month. In that same time, the Computer and Technology sector gained 5.05%, while the S&P 500 gained 3.07%.

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 $1.03, up 14.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $14.89 billion, up 22.66% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.02 per share and revenue of $56.52 billion, which would represent changes of +18.58% and +24.2%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TSM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM is currently a Zacks Rank #4 (Sell).

In terms of valuation, TSM is currently trading at a Forward P/E ratio of 29.97. For comparison, its industry has an average Forward P/E of 29.97, which means TSM is trading at a no noticeable deviation to the group.

We can also see that TSM currently has a PEG ratio of 1.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. TSM’s industry had an average PEG ratio of 1.87 as of yesterday’s close.

The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 248, which puts it in the bottom 3% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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