TSMC (TSM) closed at $86.67 in the latest trading session, marking a +1.48% move from the prior day. This move outpaced the S&P 500’s daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.39%, and the technology-centric Nasdaq increased by 1.35%.
Heading into today, shares of the chip company had lost 9.71% over the past month, lagging the Computer and Technology sector’s loss of 6.4% and the S&P 500’s loss of 6.19% in that time.
Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. The company’s earnings report is set to go public on October 19, 2023. It is anticipated that the company will report an EPS of $1.15, marking a 35.75% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $16.64 billion, showing a 17.75% drop compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $4.80 per share and revenue of $66.05 billion, which would represent changes of -26.94% and -12.96%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 past month, the Zacks Consensus EPS estimate has shifted 0.41% downward. At present, TSMC boasts a Zacks Rank of #4 (Sell).
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Investors should also note TSMC’s current valuation metrics, including its Forward P/E ratio of 17.78. This expresses no noticeable deviation compared to the average Forward P/E of 17.78 of its industry.
We can also see that TSM currently has a PEG ratio of 2.48. 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 the close of trade yesterday, the Semiconductor – Circuit Foundry industry held an average PEG ratio of 2.48.
The Semiconductor – Circuit Foundry industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 245, putting it in the bottom 3% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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