All You Need to Know About TSMC (TSM) Rating Upgrade to Buy

Core Viewpoint - TSMC has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [4]. TSMC's Earnings Outlook - For the fiscal year ending December 2025, TSMC is expected to earn $9.28 per share, which remains unchanged from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for TSMC has increased by 1.4%, reflecting a positive outlook [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks which have averaged a +25% annual return since 1988 [7]. - TSMC's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10].