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

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 higher today making it today's featured electronics winner. The industry as a whole closed the day down 0.8%. By the end of trading, Taiwan Semiconductor Manufacturing rose 19 cents (1.3%) to $14.99 on average volume. Throughout the day, 14.4 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 12 million shares. The stock ranged in a price between $14.80-$15 after having opened the day at $14.80 as compared to the previous trading day's close of $14.80. Other companies within the Electronics industry that increased today were: Nexxus Lighting ( NEXS), up 47.6%, LRAD ( LRAD), up 7.5%, Inphi ( IPHI), up 6.8%, and AMSC ( AMSC), up 6.5%.
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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 $76.88 billion and is part of the technology sector. The company has a P/E ratio of 17.2, above the average electronics industry P/E ratio of 16.7 and below the S&P 500 P/E ratio of 17.7. Shares are up 14.9% year to date as of the close of trading on Tuesday. Currently there is one analyst that rates Taiwan Semiconductor Manufacturing a buy, no analysts rate it a sell, and four 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Pulse Electronics ( PULS), down 14.6%, Jabil Circuit ( JBL), down 9.9%, Sanmina-SCI ( SANM), down 8.8%, and Hanwha SolarOne ( HSOL), down 8.1%, were all laggards within the electronics industry with NVIDIA Corporation ( NVDA) being today's electronics industry laggard.

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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