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ASE Technology Hldg (ASX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research
·2-min read

ASE Technology Hldg (ASX) closed the most recent trading day at $4.29, moving +1.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.58%. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, added 1.66%.

Heading into today, shares of the integrated circuit maker had gained 25.22% over the past month, outpacing the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 3.15% in that time.

ASX will be looking to display strength as it nears its next earnings release.

It is also important to note the recent changes to analyst estimates for ASX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. ASX is currently a Zacks Rank #2 (Buy).

Digging into valuation, ASX currently has a Forward P/E ratio of 11.72. Its industry sports an average Forward P/E of 16.77, so we one might conclude that ASX is trading at a discount comparatively.

It is also worth noting that ASX currently has a PEG ratio of 3.87. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. ASX's industry had an average PEG ratio of 2.26 as of yesterday's close.

The Electronics - Semiconductors industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 30% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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