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Should Value Investors Buy United Microelectronics (UMC) Stock?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
United Microelectronics (UMC - Free Report) is a stock many investors are watching right now. UMC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.99, which compares to its industry's average of 34.18. UMC's Forward P/E has been as high as 14.93 and as low as 7.87, with a median of 11.69, all within the past year.
UMC is also sporting a PEG ratio of 1.47. 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. UMC's industry has an average PEG of 1.61 right now. Within the past year, UMC's PEG has been as high as 4.46 and as low as 1.47, with a median of 3.33.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UMC has a P/S ratio of 2.53. This compares to its industry's average P/S of 4.11.
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 as one of the market's strongest value stocks.
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Should Value Investors Buy United Microelectronics (UMC) Stock?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
United Microelectronics (UMC - Free Report) is a stock many investors are watching right now. UMC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.99, which compares to its industry's average of 34.18. UMC's Forward P/E has been as high as 14.93 and as low as 7.87, with a median of 11.69, all within the past year.
UMC is also sporting a PEG ratio of 1.47. 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. UMC's industry has an average PEG of 1.61 right now. Within the past year, UMC's PEG has been as high as 4.46 and as low as 1.47, with a median of 3.33.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. UMC has a P/S ratio of 2.53. This compares to its industry's average P/S of 4.11.
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 as one of the market's strongest value stocks.