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 0.2%. By the end of trading, Taiwan Semiconductor Manufacturing fell 44 cents (-2.4%) to $17.81 on heavy volume. Throughout the day, 18.2 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in price between $17.69-$18.07 after having opened the day at $18.06 as compared to the previous trading day's close of $18.25. Other companies within the Electronics industry that declined today were: Pulse Electronics ( PULS), down 10.2%, TranSwitch Corporation ( TXCC), down 7%, Digital Power Corporation ( DPW), down 6.9%, and InvenSense ( INVN), down 6.2%.
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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 $97.99 billion and is part of the technology sector. The company has a P/E ratio of 22, above the S&P 500 P/E ratio of 17.7. Shares are up 10.1% year to date as of the close of trading on Monday. Currently there are two analysts that rate 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 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.

On the positive front, Supertex ( SUPX), up 11.9%, Aetrium Incorporated ( ATRM), up 8.1%, Spire Corporation ( SPIR), up 7.3%, and Inphi ( IPHI), up 6.4%, were all gainers within the electronics industry with KLA-Tencor Corporation ( KLAC) 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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