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Are Investors Undervaluing ASE Technology (ASX) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
ASE Technology (ASX - Free Report) is a stock many investors are watching right now. ASX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.04. This compares to its industry's average Forward P/E of 18.91. Over the past year, ASX's Forward P/E has been as high as 13.85 and as low as 7.46, with a median of 10.79.
We also note that ASX holds a PEG ratio of 0.30. 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 0.72. Over the past 52 weeks, ASX's PEG has been as high as 0.93 and as low as 0.28, with a median of 0.47.
These are only a few of the key metrics included in ASE Technology'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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Are Investors Undervaluing ASE Technology (ASX) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
ASE Technology (ASX - Free Report) is a stock many investors are watching right now. ASX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.04. This compares to its industry's average Forward P/E of 18.91. Over the past year, ASX's Forward P/E has been as high as 13.85 and as low as 7.46, with a median of 10.79.
We also note that ASX holds a PEG ratio of 0.30. 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 0.72. Over the past 52 weeks, ASX's PEG has been as high as 0.93 and as low as 0.28, with a median of 0.47.
These are only a few of the key metrics included in ASE Technology'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.