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Are Investors Undervaluing ASE Technology Hldg (ASX) Right Now?

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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.

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.

One company value investors might notice is ASE Technology Hldg (ASX - Free Report) . ASX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.95, while its industry has an average P/E of 20.85. ASX's Forward P/E has been as high as 17.04 and as low as 9.68, with a median of 11.84, all within the past year.

We also note that ASX holds a PEG ratio of 0.80. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ASX's PEG compares to its industry's average PEG of 1.04. Within the past year, ASX's PEG has been as high as 0.93 and as low as 0.41, with a median of 0.50.

These are just a handful of the figures considered in ASE Technology Hldg'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 ASX is an impressive value stock right now.


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