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ASX or NVMI: Which Is the Better Value Stock Right Now?
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Investors with an interest in Electronics - Semiconductors stocks have likely encountered both ASE Technology Hldg (ASX - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, ASE Technology Hldg is sporting a Zacks Rank of #1 (Strong Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASX likely has seen a stronger improvement to its earnings outlook than NVMI has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASX currently has a forward P/E ratio of 7.56, while NVMI has a forward P/E of 22.15. We also note that ASX has a PEG ratio of 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NVMI currently has a PEG ratio of 3.49.
Another notable valuation metric for ASX is its P/B ratio of 1.40. 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 4.34.
Based on these metrics and many more, ASX holds a Value grade of A, while NVMI has a Value grade of D.
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 with an interest in Electronics - Semiconductors stocks have likely encountered both ASE Technology Hldg (ASX - Free Report) and 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, ASE Technology Hldg is sporting a Zacks Rank of #1 (Strong Buy), while Nova Ltd. has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ASX likely has seen a stronger improvement to its earnings outlook than NVMI has recently. 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 Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ASX currently has a forward P/E ratio of 7.56, while NVMI has a forward P/E of 22.15. We also note that ASX has a PEG ratio of 0.33. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NVMI currently has a PEG ratio of 3.49.
Another notable valuation metric for ASX is its P/B ratio of 1.40. 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 4.34.
Based on these metrics and many more, ASX holds a Value grade of A, while NVMI has a Value grade of D.
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.