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Should Value Investors Buy ASE Technology (ASX) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 (ASX - Free Report) . ASX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.12. This compares to its industry's average Forward P/E of 18.06. ASX's Forward P/E has been as high as 9.74 and as low as 5.15, with a median of 7.46, all within the past year.
Another valuation metric that we should highlight is ASX's P/B ratio of 1.52. 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. ASX's current P/B looks attractive when compared to its industry's average P/B of 4.32. Over the past year, ASX's P/B has been as high as 1.72 and as low as 1, with a median of 1.44.
Value investors will likely look at more than just these metrics, but the above data helps show that ASE Technology is likely undervalued currently. And when considering the strength of its earnings outlook, ASX sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy ASE Technology (ASX) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 (ASX - Free Report) . ASX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.12. This compares to its industry's average Forward P/E of 18.06. ASX's Forward P/E has been as high as 9.74 and as low as 5.15, with a median of 7.46, all within the past year.
Another valuation metric that we should highlight is ASX's P/B ratio of 1.52. 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. ASX's current P/B looks attractive when compared to its industry's average P/B of 4.32. Over the past year, ASX's P/B has been as high as 1.72 and as low as 1, with a median of 1.44.
Value investors will likely look at more than just these metrics, but the above data helps show that ASE Technology is likely undervalued currently. And when considering the strength of its earnings outlook, ASX sticks out at as one of the market's strongest value stocks.