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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) a Great Value Stock 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Alpha and Omega Semiconductor (AOSL - Free Report) is a stock many investors are watching right now. AOSL is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.60 right now. For comparison, its industry sports an average P/E of 14.16. Over the last 12 months, AOSL's Forward P/E has been as high as 10.87 and as low as 6.95, with a median of 8.85.
Finally, investors will want to recognize that AOSL has a P/CF ratio of 8.98. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. AOSL's current P/CF looks attractive when compared to its industry's average P/CF of 26.88. AOSL's P/CF has been as high as 10.01 and as low as 5.67, with a median of 7.65, all within the past year.
These are only a few of the key metrics included in Alpha and Omega Semiconductor's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AOSL looks like an impressive value stock at the moment.