TSMC(US:TSM) ZACKSยท2024-06-19 14:15Core Viewpoint - TSMC shares have experienced significant growth, with a 16.9% increase over the past month and a 72.8% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Semiconductor - Circuit Foundry industry [1] Financial Performance - TSMC has consistently exceeded earnings expectations, reporting an EPS of $1.38 against a consensus estimate of $1.29 in its last earnings report [2] - For the current fiscal year, TSMC is projected to achieve earnings of $6.13 per share on revenues of $84.52 billion, reflecting an 18.34% increase in EPS and a 21.96% increase in revenues [2] - The next fiscal year forecasts earnings of $7.69 per share on revenues of $102.23 billion, indicating year-over-year changes of 25.48% and 20.96%, respectively [2] Valuation Metrics - TSMC's current valuation metrics show a trading multiple of 29.3X current fiscal year EPS estimates, aligning with the peer industry average [4] - The stock trades at 21.1X trailing cash flow, also matching the peer group's average, and has a PEG ratio of 1.23, which does not place it among the top value stocks [4] Zacks Rank - TSMC holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [5] - The stock's Value Score is C, while its Growth and Momentum Scores are both B, resulting in a combined VGM Score of B, indicating potential for future performance [3][5]