Why TSMC (TSM) Outpaced the Stock Market Today

Group 1: Stock Performance - TSMC closed at $197.61, with a +1.42% change from the previous day, outperforming the S&P 500's daily gain of 0.58% [1] - Over the past month, TSMC shares gained 10.45%, surpassing the Computer and Technology sector's gain of 7.05% and the S&P 500's gain of 4.61% [1] Group 2: Earnings Expectations - TSMC is expected to report EPS of$ 2.29, reflecting a 54.73% increase from the prior-year quarter, with projected net sales of $29.66 billion, up 42.47% from the year-ago period [2] - For the full year, earnings are projected at$ 9.19 per share and revenue at $115.46 billion, indicating changes of +30.54% and +28.17% from the preceding year [3] Group 3: Analyst Estimates and Rankings - Recent adjustments in analyst estimates for TSMC are crucial as they reflect short-term business trends, with a 2.09% rise in the Zacks Consensus EPS estimate over the past month [3][5] - TSMC currently holds a Zacks Rank of 3 (Hold), with the Zacks Rank system showing an average annual return of +25% for 1 ranked stocks since 1988 [5] Group 4: Valuation Metrics - TSMC has a Forward P/E ratio of 21.2, which is in line with the industry average [6] - The company also has a PEG ratio of 1.02, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Group 5: Industry Context - The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector and holds a Zacks Industry Rank of 91, placing it in the top 37% of all industries [8]