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ASE Technology Hldg (ASX) Gains But Lags Market: What You Should Know

·2 min read

ASE Technology Hldg (ASX) closed at $5.53 in the latest trading session, marking a +0.73% move from the prior day. This change lagged the S&P 500's 1.83% gain on the day. At the same time, the Dow added 1.4%, and the tech-heavy Nasdaq gained 0.09%.

Coming into today, shares of the integrated circuit maker had lost 6.79% in the past month. In that same time, the Computer and Technology sector lost 9.85%, while the S&P 500 lost 5.51%.

ASE Technology Hldg will be looking to display strength as it nears its next earnings release.

Any recent changes to analyst estimates for ASE Technology Hldg should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. ASE Technology Hldg currently has a Zacks Rank of #2 (Buy).

In terms of valuation, ASE Technology Hldg is currently trading at a Forward P/E ratio of 5.97. For comparison, its industry has an average Forward P/E of 14.19, which means ASE Technology Hldg is trading at a discount to the group.

We can also see that ASX currently has a PEG ratio of 0.26. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Electronics - Semiconductors industry currently had an average PEG ratio of 0.96 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ASX in the coming trading sessions, be sure to utilize Zacks.com.

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