TSMC (TSM) Stock Sinks As Market Gains: Here's Why

Group 1: Company Performance - TSMC's stock closed at $180.53, reflecting a -0.31% change, underperforming the S&P 500 which gained 1.59% [1] - Over the past month, TSMC shares have decreased by 13%, compared to a 3.43% loss in the Computer and Technology sector and a 2.42% loss in the S&P 500 [1] - Analysts expect TSMC to report earnings of$ 2.03 per share, representing a year-over-year growth of 47.1%, with revenue anticipated at $25.25 billion, indicating a 33.77% increase from the same quarter last year [2] Group 2: Full Year Estimates - For the full year, analysts project earnings of$ 9.20 per share and revenue of $113.63 billion, marking increases of +30.68% and +26.14% respectively from the previous year [3] Group 3: Analyst Estimates and Ratings - Recent changes in analyst estimates for TSMC indicate a positive outlook on the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently rates TSMC as 2 (Buy), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] Group 4: Valuation Metrics - TSMC has a Forward P/E ratio of 19.69, aligning with the industry average, and a PEG ratio of 0.6, which is also consistent with the industry average [7] Group 5: Industry Context - The Semiconductor - Circuit Foundry industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [8]