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Should Value Investors Buy ASE Technology (ASX) Stock?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is ASE Technology (ASX - Free Report) . 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 6.67. This compares to its industry's average Forward P/E of 15.97. Over the past year, ASX's Forward P/E has been as high as 11.44 and as low as 5.54, with a median of 8.02.
Investors will also notice that ASX has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASX's PEG compares to its industry's average PEG of 0.62. Within the past year, ASX's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.30.
Another notable valuation metric for ASX is its P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.09. Over the past 12 months, ASX's P/B has been as high as 2.25 and as low as 1.15, with a median of 1.66.
These are just a handful of the figures considered in ASE Technology'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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Should Value Investors Buy ASE Technology (ASX) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is ASE Technology (ASX - Free Report) . 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 6.67. This compares to its industry's average Forward P/E of 15.97. Over the past year, ASX's Forward P/E has been as high as 11.44 and as low as 5.54, with a median of 8.02.
Investors will also notice that ASX has a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASX's PEG compares to its industry's average PEG of 0.62. Within the past year, ASX's PEG has been as high as 0.50 and as low as 0.21, with a median of 0.30.
Another notable valuation metric for ASX is its P/B ratio of 1.44. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.09. Over the past 12 months, ASX's P/B has been as high as 2.25 and as low as 1.15, with a median of 1.66.
These are just a handful of the figures considered in ASE Technology'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.