TSMC (TSM) Outpaces Stock Market Gains: What You Should Know

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TSMC (TSM) closed the most recent trading day at $110.45, moving +1.37% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.52%. Elsewhere, the Dow gained 0.62%, while the tech-heavy Nasdaq added 0.12%.

Coming into today, shares of the chip company had lost 17.64% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 lost 0.76%.

Wall Street will be looking for positivity from TSM as it approaches its next earnings report date. This is expected to be April 15, 2021. On that day, TSM is projected to report earnings of $0.91 per share, which would represent year-over-year growth of 21.33%. Our most recent consensus estimate is calling for quarterly revenue of $12.83 billion, up 24.47% from the year-ago period.

TSM’s full-year Zacks Consensus Estimates are calling for earnings of $3.99 per share and revenue of $55.21 billion. These results would represent year-over-year changes of +17.7% and +21.33%, respectively.

Investors should also note any recent changes to analyst estimates for TSM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.5% lower within the past month. TSM is holding a Zacks Rank of #4 (Sell) right now.

Digging into valuation, TSM currently has a Forward P/E ratio of 27.31. For comparison, its industry has an average Forward P/E of 27.31, which means TSM is trading at a no noticeable deviation to the group.

It is also worth noting that TSM currently has a PEG ratio of 1.07. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. TSM’s industry had an average PEG ratio of 1.07 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 241, putting it in the bottom 6% 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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