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 up 0.6%. By the end of trading, Taiwan Semiconductor Manufacturing rose $0.86 (4.8%) to $18.80 on heavy volume. Throughout the day, 21,036,354 shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 9,785,500 shares. The stock ranged in a price between $18.54-$18.98 after having opened the day at $18.61 as compared to the previous trading day's close of $17.94. Other companies within the Electronics industry that increased today were: Renewable Energy Trade Board ( EBOD), up 28.7%, MoSys ( MOSY), up 9.8%, Affymetrix ( AFFX), up 8.5% and Revolution Lighting Technologies ( RVLT), up 8.4%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $88.6 billion and is part of the technology sector. The company has a P/E ratio of 16.3, below the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year to date as of the close of trading on Thursday.

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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the negative front, Digital Power Corporation ( DPW), down 16.9%, Rambus ( RMBS), down 10.2%, Trio-Tech International ( TRT), down 9.4% and Vimicro International Corporation ( VIMC), down 9.3% , were all laggards within the electronics industry with Corning ( GLW) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

null

More from Markets

Dow Logs Eighth Straight Drop as Stocks Slump

Dow Logs Eighth Straight Drop as Stocks Slump

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

This Is What's Hot Thursday - Stocks Slide, Intel's CEO Woes & Major Movers

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Banks Pass Fed 'Stress Test' With Room for Dividends, Buybacks

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

U.S. Drillers at Mercy of Iran, Saudi Production Spat as OPEC Meeting Begins

Comcast's Brian Roberts vs. Disney's Bob Iger: Which Titan Will Nab Fox?

Comcast's Brian Roberts vs. Disney's Bob Iger: Which Titan Will Nab Fox?