On Friday, Taiwan Semiconductor ADR stock earned a positive adjustment to its Relative Strength (RS) Rating, from 80 to 90.
When looking for the best stocks to buy and watch, one factor to watch closely is relative price strength. IBD's unique RS Rating identifies market leadership by using a 1 (worst) to 99 (best) score that indicates how a stock's price performance over the last 52 weeks matches up against the rest of the market.
Over 100 years of market history shows that the stocks that go on to make the biggest gains often have an 80 or better RS Rating in the early stages of their moves.
See How IBD Helps You Make More Money In Stocks
Is Taiwan Semiconductor Stock A Buy?
Taiwan Semiconductor stock is still within a buy zone after clearing a 99.09 entry in a consolidation. Once a stock moves 5% or higher beyond the original entry, it's considered extended and out of buy range.
The stock's relative strength line is in new high ground, which is a bullish indicator of technical strength.
The chipmaker reported negative growth for both sales and earnings last quarter.
Taiwan Semiconductor stock holds the No. 1 rank among its peers in the Electronics-Semiconductor Manufacturing industry group. STMicroelectronics and ON Semiconductor are also among the group's highest-rated stocks. For more industry news, check out "Chip Stocks To Watch And Semiconductor Industry News."
