TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) – A Strong Contender for CANSLIM Investors

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) stands out as a compelling candidate for investors following the CANSLIM strategy. The stock meets multiple criteria of the growth-focused approach, backed by strong fundamentals and technical momentum.

Why TSM Fits the CANSLIM Criteria

• Earnings Growth (C & A Criteria):
  TSM reported a 60.2% year-over-year EPS growth in the most recent quarter, far exceeding the CANSLIM minimum of 20%. Revenue growth was equally strong at 41.6%. Over the past three years, EPS has grown at an annualized rate of 25.3%, reinforcing consistent profitability.

• Strong Profitability (A Criteria):
  The company’s Return on Equity (ROE) of 28.7% is well above the 10% threshold recommended by CANSLIM, placing it in the top tier of semiconductor companies.

• Market Leadership (L Criteria):
  TSM’s relative strength of 79.95 indicates it outperforms nearly 80% of the market, a key trait for CANSLIM stocks.

• Institutional Sponsorship (I Criteria):
  Institutional ownership stands at 37%, below the 85% upper limit, suggesting room for further institutional accumulation.

• Healthy Financials (S Criteria):
  A Debt/Equity ratio of 0.21 reflects a conservative balance sheet, reducing financial risk.

Technical Outlook

The stock’s short-term trend is positive, with recent price action near the upper end of its 52-week range. Resistance sits around $193.10-$196.20, while support levels are established near $191.75-$191.97 and $149.86-$152.15.

For a deeper look, review the full technical analysis report and fundamental analysis report.

Our CANSLIM High Growth screener lists more stocks meeting these criteria and is updated daily.

Disclaimer

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