Taiwan Semiconductor Manufacturing (TSM) Is Today's Unusual Social Activity Stock
Trade-Ideas LLC identified
Taiwan Semiconductor Manufacturing
(
) as an unusual social activity candidate. In addition to specific proprietary factors, Trade-Ideas identified Taiwan Semiconductor Manufacturing as such a stock due to the following factors:
- TSM has 15x the normal benchmarked social activity for this time of the day compared to its average of 1.74 mentions/day.
- TSM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $210.5 million.
Identifying stocks with 'Unusual Social Activity' tends to be a valuable process for traders looking to capitalize on the 'talk of the town' stocks that are basking in far more attention from the StockTwits financial community than normal. Good press? Bad press? It ultimately doesn't matter if it's good or bad if you know how to trade around the sentiment. Certain hedge funds use such data for their proprietary algorithms and it is not uncommon to see shared social sentiment play itself out in a stock's price trend.
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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, color filters, and other semiconductor devices. The stock currently has a dividend yield of 2.8%. TSM has a PE ratio of 22. Currently there is 1 analyst that rates Taiwan Semiconductor Manufacturing a buy, 1 analyst rates it a sell, and none rate it a hold.
The average volume for Taiwan Semiconductor Manufacturing has been 7.3 million shares per day over the past 30 days. Taiwan Semiconductor has a market cap of $138.6 billion and is part of the technology sector and electronics industry. Shares are up 19.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Taiwan Semiconductor Manufacturing as a
. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- TSM's debt-to-equity ratio is very low at 0.19 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.16, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for TAIWAN SEMICONDUCTOR MFG CO is currently very high, coming in at 70.12%. Regardless of TSM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TSM's net profit margin of 31.83% significantly outperformed against the industry.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- TAIWAN SEMICONDUCTOR MFG CO's earnings per share declined by 20.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TAIWAN SEMICONDUCTOR MFG CO increased its bottom line by earning $1.80 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($1.90 versus $1.80).
- TSM, with its decline in revenue, underperformed when compared the industry average of 5.7%. Since the same quarter one year prior, revenues fell by 11.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Taiwan Semiconductor Manufacturing Ratings Report.
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