TSMC (TSM) Gains As Market Dips: What You Should Know

PenelopeHood
2022-06-01

TSMC (TSM) $Taiwan Semiconductor Manufacturing(TSM)$ closed the most recent trading day at $95.30, moving +1.63% from the previous trading session. This change outpaced the S&P 500's 0.63% loss on the day. Meanwhile, the Dow lost 0.67%, and the Nasdaq, a tech-heavy index, lost 0.15%.

Coming into today, shares of the chip company had gained 0.01% in the past month. In that same time, the Computer and Technology sector lost 1.03%, while the S&P 500 gained 0.89%.

TSMC will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.48, up 59.14% from the prior-year quarter. Meanwhile, the Consensus Estimate for revenue is projecting net sales of $18.68 billion, up 40.56% from the year-ago period.

For the full year, our Consensus Estimates are projecting earnings of $5.93 per share and revenue of $76.53 billion, which would represent changes of +43.93% and +34.68%, respectively, from the prior year.

Any recent changes to analyst estimates for TSMC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The 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. The Consensus EPS estimate remained stagnant within the past month. TSMC is currently sporting a Rank of #3 (Hold).

Valuation is also important, so investors should note that TSMC has a Forward P/E ratio of 15.81 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 15.81.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry currently has a Industry Rank of 104, which puts it in the top 42% of all 250+ industries.

The Industry Rank gauges the strength of our industry groups by measuring the average 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.

SOURCE:  nasdaq


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