Is TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) suited for high growth investing?

Our stock screener has identified TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) as a potential breakout candidate. This technical breakout setup pattern occurs when the stock consolidates after a strong uptrend. While the actual breakout is uncertain, it may be worth keeping an eye on NYSE:TSM.

Technical analysis of NYSE:TSM

As part of its analysis, ChartMill provides a comprehensive Technical Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various technical indicators and properties.

Overall TSM gets a technical rating of 10 out of 10. Both in the recent history as in the last year, TSM has proven to be a steady performer, scoring decent points in every aspect analyzed.

• Both the short term and long term trends are positive. This is a very positive sign.
• Looking at the yearly performance, TSM did better than 91% of all other stocks. On top of that, TSM also shows a nice and consistent pattern of rising prices.
• TSM is part of the Semiconductors & Semiconductor Equipment industry. There are 109 other stocks in this industry. TSM outperforms 85% of them.
• TSM is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month TSM has a been trading in the 191.98 - 222.20 range, which is quite wide. It is currently trading near the high of this range.
• Volume is considerably higher in the last couple of days.

For an up to date full technical analysis you can check the technical report of TSM

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NYSE:TSM this score is currently 7:

TSM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 205.64, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

What matters for high growth investors.

• In the most recent financial report, TAIWAN SEMICONDUCTOR-SP ADR reported a 701.0% increase in quarterly earnings compared to the previous quarter. This notable growth indicates positive momentum in the company's financials, suggesting an upward trend
• The recent q2q revenue growth of 41.5% of TAIWAN SEMICONDUCTOR-SP ADR showcases the company's ability to generate increasing revenue in a short period, reflecting its positive growth trajectory.
• TAIWAN SEMICONDUCTOR-SP ADR has achieved 65.63% growth in EPS over the past 3 years, reflecting a sustained improvement in earnings performance.
• The average next Quarter EPS Estimate by analysts was adjusted by 21.75%, reflecting the evolving market expectations for the company's EPS growth.
• The recent financial report of TAIWAN SEMICONDUCTOR-SP ADR demonstrates a 701.0% increase in quarterly earnings compared to the previous quarter. This growth indicates positive momentum in the company's financials and suggests a promising upward trend
• TAIWAN SEMICONDUCTOR-SP ADR shows accelerating EPS growth: when comparing the current Q2Q growth of 701.0% to the previous year Q2Q growth of -19.28%, we see the growth rate improving.
• The free cash flow (FCF) of TAIWAN SEMICONDUCTOR-SP ADR has seen steady growth over the past year, indicating enhanced cash flow generation and financial health. This trend underscores the company's effective capital management and its ability to generate sustainable cash flows.
• With a solid Return on Equity (ROE) of 26.0%, TAIWAN SEMICONDUCTOR-SP ADR exemplifies its ability to generate favorable returns on shareholder investments. This metric demonstrates the company's commitment to maximizing shareholder value.
• With a current Debt-to-Equity ratio at 0.24, TAIWAN SEMICONDUCTOR-SP ADR showcases its disciplined capital structure. The company's prudent management of debt obligations contributes to its financial stability and long-term sustainability.
• TAIWAN SEMICONDUCTOR-SP ADR exhibits a favorable ownership structure, with an institutional shareholder ownership of 37.06%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.
• TAIWAN SEMICONDUCTOR-SP ADR has a strong history of beating EPS estimates in the last 4 quarters, signaling its ability to consistently exceed market expectations. This indicates the company's strong financial performance and its potential for creating shareholder value.
• TAIWAN SEMICONDUCTOR-SP ADR has maintained a healthy Relative Strength (RS) over the analyzed period, with a current 91.48 rating. This demonstrates the stock's ability to outperform its peers and indicates its competitive positioning. TAIWAN SEMICONDUCTOR-SP ADR is well-positioned for potential price growth opportunities.

More high growth momentum breakout stocks can be found in our High Growth Momentum Breakout screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.