Are Investors Undervaluing ASE Technology Hldg (ASX) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is ASE Technology Hldg (ASX). ASX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 14.37. This compares to its industry's average Forward P/E of 16.03. ASX's Forward P/E has been as high as 17.04 and as low as 8.92, with a median of 11.55, all within the past year.
Investors should also note that ASX holds a PEG ratio of 0.47. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ASX's PEG compares to its industry's average PEG of 0.59. ASX's PEG has been as high as 5.49 and as low as 0.38, with a median of 0.49, all within the past year.
Finally, our model also underscores that ASX has a P/CF ratio of 6.56. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 26.18. ASX's P/CF has been as high as 6.56 and as low as 3.08, with a median of 4.06, all within the past year.
These are just a handful of the figures considered in ASE Technology Hldg's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ASX is an impressive value stock right now.
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