TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) – A High-Growth Momentum Stock with Strong Technical Setup

TAIWAN SEMICONDUCTOR-SP ADR (NYSE:TSM) stands out as a high-growth momentum candidate with a favorable technical setup. The company’s strong earnings momentum, expanding profit margins, and solid technical foundation make it an interesting prospect for growth-oriented investors.

Growth Momentum Highlights

• Strong Earnings Growth: TSM has delivered impressive year-over-year EPS growth of 52.7% (TTM), with recent quarterly EPS growth exceeding 60%.
• Accelerating Sales: Revenue growth remains robust at 39.9% (TTM), with consistent quarterly sales growth above 38%.
• Expanding Profit Margins: The company’s profit margin has improved to 43.1% in the latest quarter, up from 36.8% three quarters ago.
• Positive Earnings Surprises: TSM has beaten EPS estimates in 3 of the last 4 quarters, with an average surprise of 2.86%.
• Free Cash Flow Growth: FCF growth surged 82.8% over the past year, indicating strong operational efficiency.

Technical Strength & Setup

TSM’s technical profile reinforces its growth momentum:

• Technical Rating of 9/10: The stock is in a strong uptrend, outperforming 74% of semiconductor industry peers.
• Consolidation Pattern: The setup rating of 7/10 suggests a pullback within an uptrend, offering a potential entry point.
• Support Levels: Key support zones exist near $229.75, providing a clear stop-loss level for risk management.
• Bull Flag Formation: The recent price action indicates a bullish continuation pattern, often preceding further upside.

For a deeper technical breakdown, review the full technical report for TSM.

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Disclaimer

This is not investment advice. The observations are based on current data, and investors should conduct their own research before making decisions.