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Should Value Investors Buy AU Optronics (AUOTY) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is AU Optronics (AUOTY - Free Report) . AUOTY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Another notable valuation metric for AUOTY is its P/B ratio of 1.29. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.47. AUOTY's P/B has been as high as 2.08 and as low as 0.40, with a median of 0.66, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AUOTY has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.61.

Finally, investors will want to recognize that AUOTY has a P/CF ratio of 14.61. 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. AUOTY's current P/CF looks attractive when compared to its industry's average P/CF of 20.74. Within the past 12 months, AUOTY's P/CF has been as high as 23.54 and as low as 4.47, with a median of 7.47.

These are only a few of the key metrics included in AU Optronics'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, AUOTY looks like an impressive value stock at the moment.


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