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ASX vs. NVMI: Which Stock Should Value Investors Buy Now?
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Investors interested in Electronics - Semiconductors stocks are likely familiar with ASE Technology Hldg (ASX - Free Report) and Nova Ltd. (NVMI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both ASE Technology Hldg and Nova Ltd. are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASX currently has a forward P/E ratio of 7.49, while NVMI has a forward P/E of 19.17. We also note that ASX has a PEG ratio of 0.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVMI currently has a PEG ratio of 2.11.
Another notable valuation metric for ASX is its P/B ratio of 1.52. 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 5.20.
These metrics, and several others, help ASX earn a Value grade of A, while NVMI has been given a Value grade of D.
Both ASX and NVMI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASX is the superior value option right now.
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ASX vs. NVMI: Which Stock Should Value Investors Buy Now?
Investors interested in Electronics - Semiconductors stocks are likely familiar with ASE Technology Hldg (ASX - Free Report) and Nova Ltd. (NVMI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, both ASE Technology Hldg and Nova Ltd. are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
ASX currently has a forward P/E ratio of 7.49, while NVMI has a forward P/E of 19.17. We also note that ASX has a PEG ratio of 0.29. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NVMI currently has a PEG ratio of 2.11.
Another notable valuation metric for ASX is its P/B ratio of 1.52. 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 5.20.
These metrics, and several others, help ASX earn a Value grade of A, while NVMI has been given a Value grade of D.
Both ASX and NVMI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that ASX is the superior value option right now.