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ASX or LSCC: Which Is the Better Value Stock Right Now?

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Investors interested in stocks from the Electronics - Semiconductors sector have probably already heard of ASE Technology Hldg (ASX) and Lattice Semiconductor (LSCC). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.

There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Right now, ASE Technology Hldg is sporting a Zacks Rank of #2 (Buy), while Lattice Semiconductor has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ASX is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

ASX currently has a forward P/E ratio of 13.06, while LSCC has a forward P/E of 66.94. We also note that ASX has a PEG ratio of 0.57. 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. LSCC currently has a PEG ratio of 6.69.

Another notable valuation metric for ASX is its P/B ratio of 2.23. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, LSCC has a P/B of 21.32.

These are just a few of the metrics contributing to ASX's Value grade of A and LSCC's Value grade of D.

ASX sticks out from LSCC in both our Zacks Rank and Style Scores models, so value investors will likely feel that ASX is the better option right now.


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ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
 
Lattice Semiconductor Corporation (LSCC) : Free Stock Analysis Report
 
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