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Is Taiwan Semiconductor Manufacturing Company (TSM) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research

Investors focused on the Computer and Technology space have likely heard of Taiwan Semiconductor Manufacturing Company (TSM), but is the stock performing well in comparison to the rest of its sector peers? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

Taiwan Semiconductor Manufacturing Company is a member of our Computer and Technology group, which includes 629 different companies and currently sits at #6 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. TSM is currently sporting a Zacks Rank of #1 (Strong Buy).

The Zacks Consensus Estimate for TSM's full-year earnings has moved 5.94% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

Our latest available data shows that TSM has returned about 43.84% since the start of the calendar year. Meanwhile, the Computer and Technology sector has returned an average of 29.68% on a year-to-date basis. As we can see, Taiwan Semiconductor Manufacturing Company is performing better than its sector in the calendar year.

Looking more specifically, TSM belongs to the Semiconductor - Circuit Foundry industry, a group that includes 1 individual stocks and currently sits at #1 in the Zacks Industry Rank. On average, stocks in this group have gained 47.28% this year, meaning that TSM is slightly underperforming its industry in terms of year-to-date returns.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to TSM as it looks to continue its solid performance.


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