Taiwan Semiconductor Manufacturing Co Ltd (TSM): Today's Featured Technology 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 Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.7%. By the end of trading, Taiwan Semiconductor Manufacturing fell $0.44 (-2.4%) to $17.99 on average volume. Throughout the day, 8,875,517 shares of Taiwan Semiconductor Manufacturing exchanged hands as compared to its average daily volume of 10,650,900 shares. The stock ranged in price between $17.99-$18.46 after having opened the day at $18.30 as compared to the previous trading day's close of $18.43. Other companies within the Technology sector that declined today were: Vitesse Semiconductor ( VTSS), down 17.4%, Vipshop Holdings Ltd ADR ( VIPS), down 12.1%, Elephant Talk Communications ( ETAK), down 9.9% and Trunkbow International Holdings ( TBOW), down 9.2%.
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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 $94.0 billion and is part of the electronics industry. The company has a P/E ratio of 17.3, below the S&P 500 P/E ratio of 17.7. Shares are up 7.4% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate Taiwan Semiconductor Manufacturing a buy, no analysts rate it a sell, and 4 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, Webmedia Brands ( WEBM), down 60.7%, Mediabistro ( MBIS), down 60.7%, Interphase ( INPH), down 24.1% and Amtech Systems ( ASYS), down 13.9%.

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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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