TSMC (TSM) Advances While Market Declines: Some Information for Investors

TSMC (TSM) closed at $467.67 in the latest trading session, marking a +1.2% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.

Shares of the chip company witnessed a gain of 14.24% over the previous month, beating the performance of the Computer and Technology sector with its gain of 4.52%, and the S&P 500's gain of 2.02%.

Analysts and investors alike will be keeping a close eye on the performance of TSMC in its upcoming earnings disclosure. On that day, TSMC is projected to report earnings of $3.69 per share, which would represent year-over-year growth of 49.39%. At the same time, our most recent consensus estimate is projecting a revenue of $39.76 billion, reflecting a 32.23% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $15.3 per share and a revenue of $161.88 billion, representing changes of +43.66% and +32.22%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for TSMC. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. As of now, TSMC holds a Zacks Rank of #2 (Buy).

In terms of valuation, TSMC is currently trading at a Forward P/E ratio of 30.21. This represents no noticeable deviation compared to its industry average Forward P/E of 30.21.

Meanwhile, TSM's PEG ratio is currently 1.35. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Semiconductor - Circuit Foundry industry held an average PEG ratio of 1.35.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 5, placing it within the top 3% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.

Radical New Technology Could Hand Investors Huge Gains

Quantum Computing is the next technological revolution, and it could be even more advanced than AI.

While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.

Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.

Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Source Zacks-com