Why NYSE:TSM qualifies as a high growth stock.

Our stock screener has spotted TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) as a possible breakout candidate. A technical breakout setup pattern occurs when the stock is consolidating after a nice uptrend. Whether the actual breakout occurs remains to be seen of course, but it may be interesting to keep an eye on NYSE:TSM.

Zooming in on the technicals.

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.

We assign a technical rating of 9 out of 10 to TSM. This is due to a consistent overall performance, although we see some doubts in the very recent evolution. In the medium time frame things are still looking good.

• The long term trend is positive and the short term trend is neutral. The long term trend gets the benefit of the doubt for now.
• When comparing the yearly performance of all stocks, we notice that TSM is one of the better performing stocks in the market, outperforming 88% of all stocks. On top of that, TSM also shows a nice and consistent pattern of rising prices.
• TSM is one of the better performing stocks in the Semiconductors & Semiconductor Equipment industry, it outperforms 83% of 108 stocks in the same industry.
• TSM is currently trading in the upper part of its 52 week range. The S&P500 Index however is currently trading near a new high, so TSM is lagging the market slightly.
• In the last month TSM has a been trading in the 187.66 - 226.40 range, which is quite wide. It is currently trading in the middle of this range, so some resistance may be found above.

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

How do we evaluate the setup for NYSE:TSM?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NYSE:TSM has a 7 as its setup rating:

TSM has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. A pullback is taking place, which may present a nice opportunity for an entry. There is a support zone below the current price at 205.13, a Stop Loss order could be placed below this zone.

What matters for high growth investors.

• TAIWAN SEMICONDUCTOR-SP ADR has demonstrated consistent growth in its earnings per share (EPS) from one quarter to another (Q2Q), with a 56.89% increase. This indicates improving financial performance and the company's effective management of its operations.
• TAIWAN SEMICONDUCTOR-SP ADR has achieved 38.84% growth in its revenue over the previous quarter, signaling positive momentum in its financial performance and potential market opportunities.
• TAIWAN SEMICONDUCTOR-SP ADR has experienced 25.28% growth in EPS over a 3-year period, demonstrating its ability to generate sustained and positive earnings momentum.
• TAIWAN SEMICONDUCTOR-SP ADR has demonstrated strong 1-year revenue growth of 33.89%, reflecting revenue momentum and its ability to generate consistent top-line expansion. This growth underscores the company's strong market position and its potential for future success.
• TAIWAN SEMICONDUCTOR-SP ADR has seen a 29.17% change in the average next Quarter EPS Estimate by analysts over the last 3 months, signaling the shifting perception of the company's EPS outlook.
• The recent financial report of TAIWAN SEMICONDUCTOR-SP ADR demonstrates a 56.89% 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 56.89% to the previous year Q2Q growth of -19.28%, we see the growth rate improving.
• With positive growth in its operating margin over the past year, TAIWAN SEMICONDUCTOR-SP ADR showcases its ability to improve profitability through effective cost control and operational efficiency. This growth underscores the company's commitment to enhancing its financial performance.
• TAIWAN SEMICONDUCTOR-SP ADR has experienced notable growth in its free cash flow (FCF) over the past year, signaling improved cash generation and strong financial performance. This growth suggests the company's ability to generate excess cash for reinvestment or shareholder returns.
• TAIWAN SEMICONDUCTOR-SP ADR has a healthy Return on Equity(ROE) of 27.36%. This demonstrates the company's efficient utilization of capital and indicates its commitment to driving profitability.
• TAIWAN SEMICONDUCTOR-SP ADR exhibits a favorable Debt-to-Equity ratio at 0.22. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With 37.06% of the total shares held by institutional investors, TAIWAN SEMICONDUCTOR-SP ADR showcases a healthy distribution of ownership. This suggests a mix of institutional and retail investors, fostering a dynamic market for the stock.
• TAIWAN SEMICONDUCTOR-SP ADR has exceeded EPS estimates 3 times in the last 4 quarters, demonstrating its ability to outperform market expectations. This trend highlights the company's strong financial performance and its potential for future growth.
• The Relative Strength (RS) of TAIWAN SEMICONDUCTOR-SP ADR has consistently been strong, with a current 88.03 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. TAIWAN SEMICONDUCTOR-SP ADR demonstrates promising potential for sustained price momentum.

More ideas for high growth momentum breakouts can be found on ChartMill in our High Growth Momentum Breakout screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.