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Is Taiwan Semiconductor Manufacturing Company (TSM) Stock Outpacing Its Computer and Technology Peers This Year?

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Zacks Equity Research
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For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group 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 the Computer and Technology sector. This group includes 627 individual stocks and currently holds a Zacks Sector Rank of #7. 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 #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for TSM's full-year earnings has moved 9.41% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, TSM has moved about 6.01% on a year-to-date basis. In comparison, Computer and Technology companies have returned an average of 0.84%. This means that Taiwan Semiconductor Manufacturing Company is performing better than its sector in terms of year-to-date returns.

To break things down more, TSM belongs to the Semiconductor - Circuit Foundry industry, a group that includes 1 individual companies and currently sits at #7 in the Zacks Industry Rank. Stocks in this group have gained about 6.01% so far this year, so TSM is performing on par this group 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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