Yahoo Finance 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
ASE Technology (ASX) 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 15.80. This compares to its industry's average Forward P/E of 34.83. ASX's Forward P/E has been as high as 21.39 and as low as 9.95, with a median of 12.95, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ASX has a P/S ratio of 1.36. This compares to its industry's average P/S of 3.66.
These figures are just a handful of the metrics value investors tend to look at, but they help show that ASE Technology is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASX feels like a great value stock at the moment.
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ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report
