TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) – A Strong Growth Stock with Technical Breakout Potential

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamentals with a promising chart pattern, making it worth a closer look.

Fundamental Strengths

• Growth: TSM has shown impressive earnings growth, with EPS increasing by 52.72% over the past year and revenue growing at 22.02% annually. Future estimates suggest continued expansion, with expected EPS growth of 16.80% and revenue growth of 15.37%.
• Profitability: The company scores a 9/10 in profitability, with strong margins—41.69% net profit margin and 47.12% operating margin—placing it among the top performers in its industry.
• Financial Health: While the financial health rating is moderate at 5/10, TSM maintains a manageable debt-to-equity ratio of 0.21 and a solid current ratio of 2.39, indicating good liquidity.

Technical Setup

• Trend & Momentum: The short-term trend is positive, while the long-term trend remains neutral. TSM has outperformed 79% of the market over the past year and trades near the upper end of its recent range ($160.50 - $196.83).
• Breakout Potential: A recent Pocket Pivot signal suggests accumulation, and prices are consolidating near resistance at $193.10 - $196.20. A breakout above this zone could signal further upside.
• Support Levels: Key support lies at $191.75 - $191.97, providing a potential stop-loss level for traders.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics.
For a deeper dive, review the full fundamental report and technical analysis.

Disclaimer

This is not investment advice. The observations here are based on current data, but market conditions can change. Always conduct your own research before making investment decisions.