TSMC (TSM) Registers a Bigger Fall Than the Market: Important Facts to Note

Company Performance - TSMC's stock closed at $229.17, reflecting a -2.4% change from the previous day's closing price, underperforming compared to the S&P 500, which lost 0.79% [1] - Over the past month, TSMC shares have gained 14.44%, outperforming the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22% [1] Earnings Projections - TSMC's projected earnings per share (EPS) for the upcoming earnings disclosure is $2.32, indicating a 56.76% increase from the same quarter last year [2] - The consensus estimate for TSMC's revenue is $30.05 billion, reflecting a 44.32% increase from the same quarter last year [2] - For the full year, earnings are projected at $9.28 per share and revenue at $116.93 billion, showing increases of +31.82% and +29.8% respectively from the previous year [3] Analyst Estimates and Rankings - Recent modifications to analyst estimates for TSMC indicate positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which considers estimate changes, currently ranks TSMC as 2 (Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] Valuation Metrics - TSMC is trading at a Forward P/E ratio of 25.31, which aligns with the industry's Forward P/E of 25.31 [7] - The PEG ratio for TSMC is 1.22, matching the average PEG ratio of the Semiconductor - Circuit Foundry industry [7] Industry Context - 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 [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]