In the latest trading session, AU Optronics (AUO - Free Report) closed at $3.91, marking a -1.01% move from the previous day. This change lagged the S&P 500's 0.92% loss on the day. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 1.65%.
Heading into today, shares of the LCD screen manufacturer had gained 4.5% over the past month, outpacing the Computer and Technology sector's loss of 3.51% and the S&P 500's loss of 2.56% in that time.
AUO will be looking to display strength as it nears its next earnings release, which is expected to be February 6, 2019.
Investors should also note any recent changes to analyst estimates for AUO. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.26% higher. AUO is currently sporting a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that AUO has a Forward P/E ratio of 9.88 right now. This represents a discount compared to its industry's average Forward P/E of 15.15.
The Electronics - Miscellaneous Components industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.