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...
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is ASE Technology Hldg (ASX). ASX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.04 right now. For comparison, its industry sports an average P/E of 21.70. 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.
Investors will also notice that ASX has a PEG ratio of 0.48. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ASX's PEG compares to its industry's average PEG of 0.89. Within the past year, ASX's PEG has been as high as 0.93 and as low as 0.41, with a median of 0.56.
These are only a few of the key metrics included in ASE Technology Hldg's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ASX looks like an impressive value stock at the moment.
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