The latest trading session saw TSMC (TSM) ending at $180.53, denoting a -0.31% adjustment from its last day's close. The stock trailed the S&P 500, which registered a daily gain of 1.59%. Elsewhere, the Dow gained 1.39%, while the tech-heavy Nasdaq added 1.63%.

Shares of the chip company have depreciated by 13% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.43% and the S&P 500's loss of 2.42%.

The investment community will be paying close attention to the earnings performance of TSMC in its upcoming release. In that report, analysts expect TSMC to post earnings of $2.03 per share. This would mark year-over-year growth of 47.1%. Alongside, our most recent consensus estimate is anticipating revenue of $25.25 billion, indicating a 33.77% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.20 per share and revenue of $113.63 billion. These totals would mark changes of +30.68% and +26.14%, respectively, from last year.

Any recent changes to analyst estimates for TSMC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.07% higher. As of now, TSMC holds a Zacks Rank of #2 (Buy).

Looking at its valuation, TSMC is holding a Forward P/E ratio of 19.69. For comparison, its industry has an average Forward P/E of 19.69, which means TSMC is trading at no noticeable deviation to the group.

One should further note that TSM currently holds a PEG ratio of 0.6. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TSM's industry had an average PEG ratio of 0.6 as of yesterday's close.

The Semiconductor - Circuit Foundry industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TSM in the coming trading sessions, be sure to utilize Zacks.com.

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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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