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Are Investors Undervaluing ASE Technology Hldg (ASX) Right Now?

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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 the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is ASE Technology Hldg (ASX). 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 9.68 right now. For comparison, its industry sports an average P/E of 19.39. 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 11.77.

Investors should also note that ASX holds a PEG ratio of 0.65. 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 PEG compares to its industry's average PEG of 0.89. Over the last 12 months, ASX's PEG has been as high as 0.93 and as low as 0.38, with a median of 0.48.

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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