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Is AU Optronics (AUOTY) Stock Undervalued Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is AU Optronics (AUOTY - Free Report) . AUOTY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.74, while its industry has an average P/E of 25.66. AUOTY's Forward P/E has been as high as 24.40 and as low as -83.30, with a median of -8.16, all within the past year.

Finally, we should also recognize that AUOTY has a P/CF ratio of 8.95. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AUOTY's P/CF compares to its industry's average P/CF of 19.75. Over the past 52 weeks, AUOTY's P/CF has been as high as 9.72 and as low as 3.11, with a median of 5.89.

These are just a handful of the figures considered in AU Optronics'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 AUOTY is an impressive value stock right now.


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