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 - Free Report) 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 633 different companies and currently sits at #7 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 #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for TSM's full-year earnings has moved 3.52% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.
According to our latest data, TSM has moved about 31.89% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of 19.72% on a year-to-date basis. 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 35.33% this year, meaning that TSM is slightly underperforming its industry in terms of year-to-date returns.
Investors in the Computer and Technology sector will want to keep a close eye on TSM as it attempts to continue its solid performance.