Back to top

Are Investors Undervaluing ASE Industrial Holding (ASX) Right Now?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

ASE Industrial Holding (ASX - Free Report) is a stock many investors are watching right now. ASX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.63 right now. For comparison, its industry sports an average P/E of 26.46. Over the last 12 months, ASX's Forward P/E has been as high as 16.76 and as low as 11.86, with a median of 14.57.

Investors will also notice that ASX has a PEG ratio of 1.60. 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. ASX's PEG compares to its industry's average PEG of 2.69. Within the past year, ASX's PEG has been as high as 2.59 and as low as 1.51, with a median of 1.87.

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. ASX has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.92.

These are only a few of the key metrics included in ASE Industrial Holding's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ASX looks like an impressive value stock at the moment.




In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Advanced Semiconductor Engineering, Inc. (ASX) - free report >>

More from Zacks Tale of the Tape

You May Like

Published in