Are Investors Undervaluing ASE Technology Hldg (ASX) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Neverthe...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is ASE Technology Hldg (ASX). ASX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.44, while its industry has an average P/E of 22. Over the past year, ASX's Forward P/E has been as high as 17.04 and as low as 9.68, with a median of 11.64.
We also note that ASX holds a PEG ratio of 0.50. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASX's industry currently sports an average PEG of 0.90. Over the last 12 months, ASX's PEG has been as high as 0.93 and as low as 0.41, with a median of 0.56.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ASE Technology Hldg is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASX feels like a great value stock at the moment.
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