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The most recent trading session was ended for TSMC (TSM) at $136.75, representing a +1.39% increase from the previous trading day’s closing price. The stock’s performance outpaced the S&P 500’s daily gain of 0.89%. At the same time, the Dow Jones Industrial Average rose 1.03%, and the tech-heavy Nasdaq rose 1.25%.
Shares of the company have gained 7.61% over the past month, outpacing the Computer Technology sector’s gain of 3.77% and the S&P 500’s gain of 3.56%.
The investment community will be paying close attention to TSMC’s earnings performance in upcoming releases. The company’s EPS is expected to be $1.30, representing a year-over-year decline of 0.76%. Meanwhile, our latest consensus estimate is projecting sales of $18.38 billion, up 9.96% from the prior-year period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.19 per share and revenue of $85.41 billion, which would represent changes of +19.5% and +23.24%, respectively, from the prior year.
Additionally, investors should note any recent revisions to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have created the Zacks Rank, a quantitative model that includes these estimate changes and presents an actionable rating system.
The Zacks Rank system, ranging 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. I am. Within the past month, the Zacks Consensus EPS estimate has been revised upward by 0.08%. TSMC currently carries a Zacks Rank #2 (Buy).
In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 21.81. This compares to its industry’s average Forward P/E of 21.81.
We also note that TSM’s current PEG ratio is 1.03. 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. As of yesterday’s close, the average PEG ratio for the Semiconductor & Circuit Foundry industry was 1.03.
The semiconductor – circuit foundry industry is part of the computer and technology sector. This industry currently has a Zacks Industry Rank #2, which puts it in the top 1% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank. The Zacks Industry Rank is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
To follow TSM in upcoming trading sessions, be sure to visit Zacks.com.
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Taiwan Semiconductor Manufacturing Co., Ltd. (TSM): Free Stock Analysis Report
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