Taiwan Semiconductor Manufacturing (TSM): Today's Featured Electronics Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Taiwan Semiconductor Manufacturing ( TSM) pushed the Electronics industry lower today making it today's featured Electronics laggard. The industry as a whole closed the day down 0.7%. By the end of trading, Taiwan Semiconductor Manufacturing fell 37 cents (-2.4%) to $14.99 on light volume. Throughout the day, 7.8 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 12.3 million shares. The stock ranged in price between $14.99-$15.26 after having opened the day at $15.21 as compared to the previous trading day's close of $15.36. Other companies within the Electronics industry that declined today were: Enova Systems ( ENA), down 18.6%, Nexxus Lighting ( NEXS), down 18.4%, Netlist ( NLST), down 12.1%, and Pulse Electronics ( PULS), down 6.7%.
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Taiwan Semiconductor Manufacturing Company Limited engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Taiwan Semiconductor Manufacturing has a market cap of $77.92 billion and is part of the technology sector. The company has a P/E ratio of 17.5, above the average electronics industry P/E ratio of 17 and below the S&P 500 P/E ratio of 17.7. Shares are up 19% year to date as of the close of trading on Friday. Currently there are two analysts that rate Taiwan Semiconductor Manufacturing a buy, no analysts rate it a sell, and three rate it a hold.

TheStreet Ratings rates Taiwan Semiconductor Manufacturing as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, IRIS International ( IRIS), up 45.6%, Giga-tronics ( GIGA), up 13.1%, Trio-Tech International ( TRT), up 12.5%, and Planar Systems ( PLNR), up 7.9%, were all gainers within the electronics industry with Advanced Micro Devices ( AMD) being today's featured electronics industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the electronics industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the electronics industry could consider ProShares Ultra Short Semiconductor ( SSG).

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