The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Taiwan Semiconductor Manufacturing Company (TSM) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of TSM and the rest of the Computer and Technology group's stocks.
Taiwan Semiconductor Manufacturing Company is a member of our Computer and Technology group, which includes 629 different companies and currently sits at #5 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 emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the 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 means that analyst sentiment is stronger and the stock's earnings outlook is improving.
Based on the most recent data, TSM has returned 43.27% so far this year. In comparison, Computer and Technology companies have returned an average of 28.34%. As we can see, Taiwan Semiconductor Manufacturing Company is performing better than its sector in the calendar year.
To break things down more, TSM belongs to the Semiconductor - Circuit Foundry industry, a group that includes 1 individual companies and currently sits at #1 in the Zacks Industry Rank. On average, stocks in this group have gained 46.71% this year, meaning that TSM is slightly underperforming its industry in terms of year-to-date returns.
TSM will likely be looking to continue its solid performance, so investors interested in Computer and Technology stocks should continue to pay close attention to the company.
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM) : Free Stock Analysis Report
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