In the latest trading session, TSMC (TSM) closed at $114.14, marking a -1.42% move from the previous day. This change lagged the S&P 500’s daily gain of 1.4%.
Prior to today’s trading, shares of the chip company had gained 3.52% over the past month. This has lagged the Computer and Technology sector’s gain of 7.26% and outpaced the S&P 500’s gain of 1.07% in that time.
TSM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.89, up 14.1% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.96 billion, up 24.83% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $4.07 per share and revenue of $56.56 billion, which would represent changes of +20.06% and +24.29%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for TSM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 past month, the Zacks Consensus EPS estimate remained stagnant. TSM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, TSM is holding a Forward P/E ratio of 28.45. Its industry sports an average Forward P/E of 28.45, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.
It is also worth noting that TSM currently has a PEG ratio of 1.79. 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. The Semiconductor – Circuit Foundry industry currently had an average PEG ratio of 1.79 as of yesterday’s close.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 139, putting it in the bottom 46% of all 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.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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