Here's Why TSMC (TSM) Is a Great 'Buy the Bottom' Stock Now

Core Viewpoint - TSMC shares have experienced a decline of 10.9% over the past four weeks, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Technical Analysis - A hammer chart pattern indicates a minor difference between opening and closing prices, with a long lower wick suggesting that the stock found support after a downtrend [3][4]. - The occurrence of a hammer pattern at the bottom of a downtrend signals that bears may have lost control, indicating a potential trend reversal [4]. Fundamental Analysis - There has been an upward trend in earnings estimate revisions for TSMC, which is a bullish indicator suggesting potential price appreciation in the near term [6]. - The consensus EPS estimate for TSMC has increased by 0.1% over the last 30 days, indicating that analysts expect better earnings than previously predicted [7]. - TSMC holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].