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ASX or NVMI: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either ASE Technology Hldg (ASX - Free Report) or Nova Ltd. (NVMI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, ASE Technology Hldg is sporting a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). This means that ASX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASX currently has a forward P/E ratio of 19.19, while NVMI has a forward P/E of 42.02. We also note that ASX has a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVMI currently has a PEG ratio of 2.92.
Another notable valuation metric for ASX is its P/B ratio of 2.63. 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. For comparison, NVMI has a P/B of 8.55.
Based on these metrics and many more, ASX holds a Value grade of A, while NVMI has a Value grade of F.
ASX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASX is likely the superior value option right now.
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ASX or NVMI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Electronics - Semiconductors sector might want to consider either ASE Technology Hldg (ASX - Free Report) or Nova Ltd. (NVMI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, ASE Technology Hldg is sporting a Zacks Rank of #2 (Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). This means that ASX's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is only part of the picture for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASX currently has a forward P/E ratio of 19.19, while NVMI has a forward P/E of 42.02. We also note that ASX has a PEG ratio of 0.67. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NVMI currently has a PEG ratio of 2.92.
Another notable valuation metric for ASX is its P/B ratio of 2.63. 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. For comparison, NVMI has a P/B of 8.55.
Based on these metrics and many more, ASX holds a Value grade of A, while NVMI has a Value grade of F.
ASX is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that ASX is likely the superior value option right now.