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Alpha and Omega Semiconductor Limited (AOSL) - free report >>
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Alpha and Omega Semiconductor Limited (AOSL) - free report >>
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Is Alpha and Omega Semiconductor (AOSL) Stock Undervalued Right Now?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Alpha and Omega Semiconductor (AOSL - Free Report) is a stock many investors are watching right now. AOSL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.14 right now. For comparison, its industry sports an average P/E of 21.49. Over the past 52 weeks, AOSL's Forward P/E has been as high as 20.63 and as low as 7.51, with a median of 11.80.
Finally, our model also underscores that AOSL has a P/CF ratio of 7.91. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AOSL's current P/CF looks attractive when compared to its industry's average P/CF of 30.68. Within the past 12 months, AOSL's P/CF has been as high as 17.01 and as low as 6.10, with a median of 9.62.
These are just a handful of the figures considered in Alpha and Omega Semiconductor'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 AOSL is an impressive value stock right now.