4-Star Stocks Poised to Pop: Taiwan Semiconductor

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, contract chip giant Taiwan Semiconductor Manufacturing (NYS: TSM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at TSMC's business and see what CAPS investors are saying about the stock right now.

TSMC facts

Headquarters (founded)

Hsinchu, Taiwan (1987)

Market Cap

$74.7 billion

Industry

Semiconductors

Trailing-12-Month Revenue

$14.8 billion

Management

Chairman/CEO Dr. Morris Chang
CFO Lora Ho

Return on Equity (average, past 3 years)

27.5%

Cash/Debt

$6.3 billion / $2.2 billion

Dividend Yield

2.8%

Competitors

Semiconductor Manufacturing International
United Microelectronics


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 1,406 members who have rated TSMC believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, Unbridled, succinctly summed up the TSMC bull case for our community:

Unique company in that they are a manufacturer for many of the designers of these products. Good dividend and cash on their balance sheet. Good pricing power. A core holding within the tech space.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, TSMC may not be your top choice.

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The article 4-Star Stocks Poised to Pop: Taiwan Semiconductor originally appeared on Fool.com.

Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days.We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.

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