Taiwan Semiconductor Manufacturing (TSM) Falls Further As It's Water-Logged And Getting Wetter
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
Taiwan Semiconductor Manufacturing
(
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Taiwan Semiconductor Manufacturing as such a stock due to the following factors:
- TSM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $264.4 million.
- TSM has traded 12.3 million shares today.
- TSM traded in a range 210.6% of the normal price range with a price range of $0.99.
- TSM traded below its daily resistance level (quality: 13 days, meaning that the stock is crossing a resistance level set by the last 13 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on TSM:
Taiwan Semiconductor Manufacturing Company Limited engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits and other semiconductor devices. The stock currently has a dividend yield of 1.6%. TSM has a PE ratio of 20.8. Currently there is 1 analyst that rates Taiwan Semiconductor Manufacturing a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Taiwan Semiconductor Manufacturing has been 12.9 million shares per day over the past 30 days. Taiwan Semiconductor has a market cap of $128.6 billion and is part of the technology sector and electronics industry. Shares are up 9.5% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Taiwan Semiconductor Manufacturing as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.5%. Since the same quarter one year prior, revenues rose by 34.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 30.61% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TSM should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TAIWAN SEMICONDUCTOR MFG CO reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TAIWAN SEMICONDUCTOR MFG CO increased its bottom line by earning $1.61 versus $1.18 in the prior year. This year, the market expects an improvement in earnings ($1.81 versus $1.61).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 75.2% when compared to the same quarter one year prior, rising from $1,318.53 million to $2,309.57 million.
- You can view the full Taiwan Semiconductor Manufacturing Ratings Report.
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