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Is United Microelectronics (UMC) a Great Value Stock Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is United Microelectronics (UMC - Free Report) . UMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.04. This compares to its industry's average Forward P/E of 17.33. Over the last 12 months, UMC's Forward P/E has been as high as 17.01 and as low as 6.64, with a median of 11.95.
We also note that UMC holds a PEG ratio of 0.26. 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. UMC's industry has an average PEG of 0.69 right now. Within the past year, UMC's PEG has been as high as 0.87 and as low as 0.26, with a median of 0.46.
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. UMC has a P/S ratio of 2.44. This compares to its industry's average P/S of 2.58.
Value investors will likely look at more than just these metrics, but the above data helps show that United Microelectronics is likely undervalued currently. And when considering the strength of its earnings outlook, UMC sticks out at as one of the market's strongest value stocks.
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Is United Microelectronics (UMC) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.
One company to watch right now is United Microelectronics (UMC - Free Report) . UMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.04. This compares to its industry's average Forward P/E of 17.33. Over the last 12 months, UMC's Forward P/E has been as high as 17.01 and as low as 6.64, with a median of 11.95.
We also note that UMC holds a PEG ratio of 0.26. 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. UMC's industry has an average PEG of 0.69 right now. Within the past year, UMC's PEG has been as high as 0.87 and as low as 0.26, with a median of 0.46.
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. UMC has a P/S ratio of 2.44. This compares to its industry's average P/S of 2.58.
Value investors will likely look at more than just these metrics, but the above data helps show that United Microelectronics is likely undervalued currently. And when considering the strength of its earnings outlook, UMC sticks out at as one of the market's strongest value stocks.