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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. Nevertheless, we are always paying attention to...

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This story originally appeared on Zacks

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.

- Zacks

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

ASE Technology Hldg (ASX) is a stock many investors are watching right now. ASX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.24 right now. For comparison, its industry sports an average P/E of 21.90. ASX's Forward P/E has been as high as 17.04 and as low as 7.98, with a median of 11.64, all within the past year.

Investors will also notice that ASX has a PEG ratio of 0.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ASX's industry has an average PEG of 0.81 right now. Over the last 12 months, ASX's PEG has been as high as 0.93 and as low as 0.35, 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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