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TSMC (TSM) Dips More Than Broader Markets: What You Should Know

TSMC (TSM) closed at $81.91 in the latest trading session, marking a -1.47% move from the prior day. This change lagged the S&P 500's 0.84% loss on the day. At the same time, the Dow lost 0.47%, and the tech-heavy Nasdaq lost 1.27%.

Coming into today, shares of the chip company had gained 5.84% in the past month. In that same time, the Computer and Technology sector gained 0.69%, while the S&P 500 gained 0.6%.

Investors will be hoping for strength from TSM as it approaches its next earnings release. The company is expected to report EPS of $0.81, up 30.65% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $11.45 billion, up 21.84% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.14 per share and revenue of $43.59 billion. These totals would mark changes of +46.05% and +25.86%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for TSM. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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. Within the past 30 days, our consensus EPS projection remained stagnant. TSM currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TSM currently has a Forward P/E ratio of 26.52. Its industry sports an average Forward P/E of 26.52, so we one might conclude that TSM is trading at a no noticeable deviation comparatively.

Investors should also note that TSM has a PEG ratio of 1.35 right now. 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. TSM's industry had an average PEG ratio of 1.35 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 125, which puts it in the top 50% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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