Taking into account all relevant factors, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) scores 100% Buy on the technical side. The share price is also flashing a Buy from the Barchart TrendSpotter trading system. Investors starting out on a short-term path of investing should know that short terms indicators for TSM averaged 100% Buy with an average daily trading volume over the past 20 days at 5957481 shares. Those using medium-term investment strategies, the shares have overall a 1% Buy signal while the 50-day average daily volume remained almost 6069862 shares. It’s also important to note that the stock, whose average daily volume over the 100 days as of this piece was 6665884 shares, is signaling100% Buy for long term investors.
The stock is lingering around the initial support level of $57.87. After this, the following support is at the zone of $57.34. Up until the time the TSM stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 57.76 on the daily chart, and this may be a cause for concern. In case the price goes below $57.34 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $59.31 level may cause a pull-back move approaching $60.22 mark.
Taiwan Semiconductor Manufacturing Company Limited (TSM) is most likely going to rise 4.12 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $74 as 12-month high price target. This represents a whopping 24.31 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $64.85, which means a return possibility of 8.94 percent in comparison with the closing price of the stock of $59.53 in recent trading session. The lowest price set for the stock is $56 which is just above -5.93 percent from TSM share’s price at the end of session.
In the recent trading session, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) shares gained 1.95% or 1.14 points to reach at $59.53 with a thin trading volume of 2.768 million shares. It opened the trading session at $59.67, the shares rose to $59.7 and dropped to $58.26, the range by which the price of stock traded the whole session. The company now has a market cap of $289 billion and currently has 4.95 billion outstanding shares. Taiwan Semiconductor Manufacturing Company Limited (TSM) stock has accumulated 0.24 percent of market value in 21 trading days.
Stock analysts at Morgan Stanley upped their rating on shares of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) from Equal-Weight to a new rating of Overweight in their opinion released on September 05. CLSA analysts bumped their recommendation on TSM stock from prior rating of Underperform to Buy in a separate flash note to investors on July 19.
TSM stock’s trailing 3-year beta is 1.03, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.12 share in the trailing 52 weeks. The stock’s value surged 0.5 percent year to date (YTD) compared to a rise of 62.01 percent in 52 week’s period. The firm’s shares are still trading -1.83 percent below its 1-year high of $60.64 and 70.92 percent up from 52-week low of $34.83. The average consensus ranking on the company is 1.7, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.
Taiwan Semiconductor Manufacturing Company Limited (TSM) shares are trading at a P/E ratio of 28.29 times earnings posted in the trailing 12 months. The industry TSM deals with has an average P/E of 32.58. Its P/B ratio is standing at 5.39X compared to the 8.25 industry average. It is additionally sporting a 7.16 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.98. Taiwan Semiconductor Manufacturing Company Limited has a 45.2% gross profit margin, with its operating margin around 34.1%. Alongside this, the company’s net profit margin currently stands at 31.6%.
Past records have indicated that shares in Taiwan Semiconductor Manufacturing Company Limited rose on 11 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of TSM’s Q4 earnings on January 16. Analysts are predicting revenue to climb 11.3 percent to $10.5B in the financial fourth quarter, while EPS will soar by about 12.7 percent to $0.71 per share. In the last quarter, it’s earnings of $0.41 per share came better than the $0.40778, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $9.57B, topping the $9.32B analysts had expected. Earnings are seen to rise by 2.3 percent this year, 28.54 percent in the coming year and the trend continues by 11.9 percent every year in the next 5 years.