Despite increasing fears of a U.S.-China trade war, semiconductor companies like Taiwan Semiconductor Co. Ltd. (TSM, Financial)(TPE:2330) and IPG Photonics Corp. (IPGP, Financial) still made the undervalued predictable screener and Buffett-Munger screener as of Tuesday.
Dow trades 300 points lower as trade war fears escalate
The Dow Jones reached an intraday low of 24,574.25 around 10:30 a.m. on news of President Trump’s latest threat of “additional tariffs” on over $200 billion worth of Chinese goods, according to CNBC.
Top semiconductor companies like Intel Corp. (INTC, Financial), Nvidia Corp. (NVDA, Financial), Broadcom Inc. (AVGO, Financial), Texas Instruments Inc. (TXN, Financial) and Qualcomm Inc. (QCOM, Financial) traded between 0% and 5% lower from the previous close.
Taiwanese semiconductor company makes both undervalued predictable and Buffett-Munger screeners
Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) co-managers Warren Buffett (Trades, Portfolio) and Charlie Munger (Trades, Portfolio) listed Taiwan Semiconductor on their list of good companies as the company has expanding operating margins and a GuruFocus business predictability rank of 4.5 stars. The latter implies consistent revenue and earnings growth over the past 10 years: additionally, Taiwan Semiconductor’s three-year revenue growth rate of 8.60% outperforms 67% of global competitors.
Taiwan Semiconductor said on June 8 that net revenues for May were approximately 80.97 billion Taiwanese dollars ($2.68 billion), up 11.2% from May 2017. The company’s revenues for the first five months of 2018 outperformed revenues for the first five months of 2017 by 13%.
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Massachusetts-based IPG Photonics also made the undervalued predictable and Buffett-Munger screeners. GuruFocus ranks the company’s profitability 9 out of 10 as it has expanding operating margins, a Piotroski F-score of 8 and a business predictability rank of five stars.
Disclosure: No positions.
