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 up 0.3%. By the end of trading, Taiwan Semiconductor Manufacturing fell 19 cents (-1.1%) to $17.08 on light volume. Throughout the day, 5.6 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 10.7 million shares. The stock ranged in price between $17.06-$17.32 after having opened the day at $17.27 as compared to the previous trading day's close of $17.27. Other companies within the Electronics industry that declined today were: LDK Solar Company ( LDK), down 10.3%, Vimicro International Corporation ( VIMC), down 8.5%, QLogic Corporation ( QLGC), down 7.7%, and GT Advanced Technologies ( GTAT), down 7.1%.
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Taiwan Semiconductor Manufacturing Company Limited engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices. Taiwan Semiconductor Manufacturing has a market cap of $88.81 billion and is part of the technology sector. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are up 32.7% year to date as of the close of trading on Friday. Currently there is one analyst that rates Taiwan Semiconductor Manufacturing a buy, one analyst rates 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 revenue growth, increase in net income, solid stock price performance and growth in earnings per share. 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, Sequans Communications SA ADR ( SQNS), up 55.4%, Revolution Lighting Technologies ( RVLT), up 27.7%, Geospace Technologies ( GEOS), up 26.2%, and Eltek ( ELTK), up 15.2%, 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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