Taiwan Semiconductor Manufacturing Company (TSMC) currently holds an average brokerage recommendation (ABR) of 1.30, indicating a consensus between “Strong Buy” and “Buy.” This rating is derived from 10 brokerage firms, with eight ratings as “Strong Buy” and one as “Buy,” representing 80% and 10% of the total recommendations, respectively.
Despite the favorable ABR, studies suggest that brokerage recommendations may not be reliable indicators for future stock movements due to inherent biases within brokerage firms. Additionally, the Zacks Consensus Estimate for TSMC’s earnings has recently increased by 0.2% to $6.45, resulting in a Zacks Rank of #2 (Buy), further validating the positive sentiment around the company.
Investors are advised to consider both the ABR and Zacks Rank, as the latter reflects more timely revisions in earnings estimates and has shown a strong correlation with stock price movements.
