TSMC (TSM) Suffers a Larger Drop Than the General Market: Key Insights

Company Performance - TSMC's stock closed at $173.96, reflecting a -0.81% change from the previous trading day, underperforming the S&P 500's daily loss of 0.16% [1] - Over the past month, TSMC shares gained 11.64%, outperforming the Computer and Technology sector's gain of 6.77% and the S&P 500's gain of 3.15% [1] - The upcoming earnings report is expected to show an EPS of $1.34, a 17.54% increase year-over-year, with revenue forecasted at $19.95 billion, indicating a 27.28% growth compared to the same quarter last year [1] Analyst Estimates - For the full year, Zacks Consensus Estimates project earnings of $6.13 per share and revenue of $84.52 billion, reflecting increases of +18.34% and +21.96% respectively from the previous year [2] - Recent changes to analyst estimates indicate positive sentiment regarding TSMC's business and profitability, with a direct correlation between estimate alterations and stock price performance [2] Valuation Metrics - TSMC currently has a Zacks Rank of 2 (Buy), with the Zacks Consensus EPS estimate having increased by 0.26% over the past month [3] - The company is trading at a Forward P/E ratio of 28.63, which aligns with the industry's average Forward P/E [3] - TSMC's PEG ratio stands at 1.2, consistent with the Semiconductor - Circuit Foundry industry's average PEG ratio of 1.2 [3] Industry Overview - The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 2, placing it in the top 1% of over 250 industries [4] - The Zacks Industry Rank measures the strength of industry groups, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [4]