Taiwan Semiconductor Manufacturing (TSM): Today's Featured Technology 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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day down 0.1%. By the end of trading, Taiwan Semiconductor Manufacturing rose 27 cents (1.5%) to $18 on average volume. Throughout the day, 9.9 million shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 9.1 million shares. The stock ranged in a price between $17.90-$18.05 after having opened the day at $18.01 as compared to the previous trading day's close of $17.73. Other companies within the Technology sector that increased today were: Superconductor Technologies ( SCON), up 70.4%, MakeMusic ( MMUS), up 31.1%, Spire Corporation ( SPIR), up 15.9%, and Remark Media ( MARK), up 13.6%.
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Taiwan Semiconductor Manufacturing Company Limited engages in the computer-aided design, manufacture, packaging, testing, sale, and marketing of integrated circuits and other semiconductor devices. Taiwan Semiconductor Manufacturing has a market cap of $91.87 billion and is part of the electronics industry. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are up 3.3% year to date as of the close of trading on Tuesday. 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 negative front, Suntech Power Holdings ( STP), down 23.9%, Sigmatron International ( SGMA), down 23.4%, Velti ( VELT), down 22.8%, and Majesco Entertainment Company ( COOL), down 15.3%, were all laggards within the technology sector with Zynga Inc Class A ( ZNGA) being today's technology sector laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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