TSMC(US:TSM) ZACKSยท2025-01-23 15:16Core Viewpoint - TSMC shares have shown strong performance, increasing 8.2% over the past month and reaching a 52-week high of $225.43, with a year-to-date gain of 13% compared to the broader sector and industry [1] Financial Performance - TSMC has consistently exceeded earnings expectations, reporting EPS of $2.24 against a consensus estimate of $2.16 in its last earnings report [2] - For the current fiscal year, TSMC is projected to achieve earnings of $9.12 per share on revenues of $113.52 billion, reflecting a 29.55% increase in EPS and a 26.02% increase in revenues [3] - The next fiscal year forecasts earnings of $10.96 per share on $135.05 billion in revenues, indicating year-over-year changes of 20.13% and 18.96%, respectively [3] Valuation Metrics - TSMC's current valuation metrics show a Price-to-Earnings (P/E) ratio of 24.5X for the current fiscal year, aligning with the peer industry average [7] - The stock trades at 26.2X on a trailing cash flow basis, also matching the peer group's average, with a PEG ratio of 0.74 [7] Style Scores and Zacks Rank - TSMC has a Value Score of C, a Growth Score of C, and a Momentum Score of A, resulting in a VGM Score of B [6] - The stock holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, indicating potential for further price appreciation [8]