Good entry point for tsm

The good entry point for Taiwan Semiconductor Manufacturing (TSM) depends on your investment horizon and risk tolerance. Here's an analysis based on the latest data: 1. **Fundamental Analysis**: - **Financial Performance**: TSM reported a revenue growth rate of 38.05%, a free cash flow of $2.19 billion, and a basic EPS of $0.39 as of Q3 2024. This indicates strong financial performance and profitability. - **Revenue Growth**: The 3-year revenue CAGR is 26.79%, indicating a robust growth trajectory. - **Valuation**: The company's P/E(TTM) is 38.8, P/S is 12.2, and Price to Book is 8.26. These metrics suggest the stock is valued highly relative to its earnings and assets. 2. **Technical Analysis**: - **Trend Analysis**: The stock is currently trading above its 5-Day, 10-Day, and 20-Day moving averages, which could indicate a positive short-term trend. However, it is trading below its 30-Day, 50-Day, and 60-Day moving averages, suggesting a potential for a pullback. - **Moving Averages**: The 120-Day, 200-Day, and 250-Day moving averages are $168.01, $152.27, and $141.27, respectively. These could act as support levels. - **MACD and RSI**: The MACD is 1.46, and the RSI is 64.69, both of which are above the midpoint and indicating a stock that is potentially overbought. 3. **Market Sentiment**: - **Analyst Ratings**: The consensus rating is a "Strong Buy" with an average price target of $233.75, which is a significant premium to the current price. - **Institutional Activity**: There is no specific data on institutional ownership, but the strong analyst sentiment could indicate stability. - **Recent Performance**: The stock has been performing well, with a recent price increase of 41.32%. In conclusion, given the strong financial performance, positive growth prospects, and reasonable technical indicators, a good entry point for TSM could be around the 120-Day moving average of $168.01, which is close to the current price. This level is supported by the 120-Day, 200-Day, and 250-Day moving averages, and the consensus target suggests upside potential. However, investors should monitor the stock's performance against the 5-Day, 10-Day, and 20-Day moving averages for signs of a trend reversal.