TSMC(TSM) ZACKS·2024-07-12 14:15Core Viewpoint - TSMC shares have shown significant growth, with a 6.7% increase over the past month and a 77.4% rise since the beginning of the year, outperforming both the Zacks Computer and Technology sector and the Zacks Semiconductor - Circuit Foundry industry [1] Financial Performance - TSMC has consistently exceeded earnings expectations, reporting an EPS of 1.29 in its last earnings report [2] - For the current fiscal year, TSMC is projected to achieve earnings of 85.12 billion, reflecting an 18.92% increase in EPS and a 22.83% increase in revenues [2] - The next fiscal year forecasts earnings of 103.84 billion, indicating year-over-year changes of 28.34% and 21.99%, respectively [2] Valuation Metrics - TSMC's stock trades at 29.9X current fiscal year EPS estimates, aligning with the peer industry average [4] - On a trailing cash flow basis, the stock also trades at 21.6X, consistent with its peer group's average [4] - The company has a PEG ratio of 1.18, which does not place it among the top tier of stocks from a value perspective [4] Zacks Rank - TSMC holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates [5] - The stock meets the criteria for selection, as it carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, suggesting potential for further growth in the near term [5]