Should Value Investors Buy United Microelectronics (UMC) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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) is a stock many investors are watching right now. UMC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.96, while its industry has an average P/E of 32.45. Over the last 12 months, UMC's Forward P/E has been as high as 13.14 and as low as 8.40, with a median of 11.44.
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 2.96. This compares to its industry's average P/S of 3.2.
These are only a few of the key metrics included in United Microelectronics'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, UMC looks like an impressive value stock at the moment.
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United Microelectronics Corporation (UMC) : Free Stock Analysis Report