Company Performance - Amkor Technology (AMKR) closed at $32.96, reflecting a -0.75% change from the previous day, underperforming the S&P 500's daily loss of 0.02% [1] - The stock has increased by 2.06% over the past month, which is lower than the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.59% [1] - Analysts expect Amkor Technology to report earnings of $0.23 per share, indicating a year-over-year decline of 11.54%, with revenue forecasted at $1.45 billion, a 0.35% decline compared to the same quarter last year [1] Full Year Estimates - Zacks Consensus Estimates project earnings of $1.78 per share and revenue of $6.56 billion for the full year, representing changes of +21.92% and +0.92% from the prior year, respectively [2] - Recent adjustments to analyst estimates for Amkor Technology may indicate changing near-term business trends, with positive revisions suggesting optimism about the company's outlook [2] Zacks Rank and Valuation - Amkor Technology currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Rank system showing a track record of superior performance, with 1 stocks averaging an annual return of +25% since 1988 [3] - The company is trading at a Forward P/E ratio of 18.62, which is significantly lower than the industry average Forward P/E of 38.92, suggesting that Amkor Technology is trading at a discount [3] - The Electronics - Semiconductors industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 185, placing it in the bottom 27% of over 250 industries [3]

Core Insights - The article emphasizes the importance of value investing as a successful strategy across various market conditions, highlighting the use of valuation metrics to identify strong stocks [1] - Zacks has developed a Style Scores system to identify stocks with specific traits, particularly focusing on those with high grades in the "Value" category [1] Company Analysis: Amkor Technology (AMKR) - Amkor Technology currently holds a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating strong potential for value investors [2] - The stock has a P/E ratio of 15.20, significantly lower than the industry average P/E of 32.36, suggesting it may be undervalued [2] - AMKR's Forward P/E has fluctuated between 8.56 and 23.94 over the past year, with a median of 14.90, indicating variability in market perception [2] - The P/S ratio for AMKR is 1.28, compared to the industry average P/S of 3.83, further supporting the notion that the company is undervalued [2] - Overall, Amkor Technology stands out as one of the market's strongest value stocks, bolstered by a favorable earnings outlook [2]

Core Viewpoint - Amkor Technology (AMKR) has shown strong stock performance recently, outperforming both the S&P 500 and its industry peers, indicating potential for continued growth in the near term [1] Earnings Estimates - For the current quarter, Amkor Technology is expected to report earnings of $0.23 per share, reflecting a year-over-year decline of -11.5% [3] - The consensus earnings estimate for the current fiscal year is $1.78, indicating a year-over-year increase of +21.9%, with a recent upward revision of +3.9% [3] - For the next fiscal year, the earnings estimate is $2.47, representing a significant increase of +38.8% compared to the previous year [3] Revenue Growth - The consensus sales estimate for the current quarter is $1.45 billion, showing a slight decline of -0.4% year-over-year [5] - For the current fiscal year, the revenue estimate is $6.56 billion, indicating a modest increase of +0.9%, while the next fiscal year is projected to grow by +11.2% to $7.3 billion [5] Recent Performance - In the last reported quarter, Amkor Technology achieved revenues of $1.37 billion, down -7.2% year-over-year, but exceeded the Zacks Consensus Estimate by +1% [6] - The company reported an EPS of $0.24, which is a +140% surprise compared to the consensus estimate [6] - Amkor has consistently beaten consensus EPS estimates over the last four quarters and has topped revenue estimates twice during this period [6] Valuation - Amkor Technology is currently rated A in the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [9] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is fairly valued [7] Overall Outlook - The Zacks Rank 1 (Strong Buy) suggests that Amkor Technology may outperform the broader market in the near term, supported by positive earnings estimate revisions [4][10]

Core Viewpoint - Analyst recommendations play a significant role in influencing stock prices, but their reliability is questionable due to potential biases from brokerage firms [1][2][3] Brokerage Recommendation Summary - Amkor Technology (AMKR) has an average brokerage recommendation (ABR) of 1.83, indicating a consensus between Strong Buy and Buy, with 50% Strong Buy and 16.7% Buy recommendations from six brokerage firms [1] - Despite the positive ABR, studies suggest limited success of brokerage recommendations in identifying stocks with the highest price increase potential [2][5] - Brokerage analysts tend to exhibit a strong positive bias in their ratings, with five "Strong Buy" recommendations for every "Strong Sell" [2][3] Zacks Rank Comparison - Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) based on earnings estimate revisions, which are more reliable indicators of future price movements compared to ABR [3][4][5] - The ABR is based solely on brokerage recommendations and may not be up-to-date, while Zacks Rank reflects timely earnings estimate revisions [4][6] Investment Potential for Amkor Technology - The Zacks Consensus Estimate for Amkor Technology has increased by 9.6% over the past month to $1.78, indicating growing optimism among analysts regarding the company's earnings prospects [7] - The increase in consensus estimate, along with other factors, has resulted in a Zacks Rank 1 (Strong Buy) for Amkor Technology, suggesting a potential for stock price appreciation [7]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Amkor Technology (AMKR) - Amkor Technology currently holds a Momentum Style Score of B and a Zacks Rank of 1 (Strong Buy), indicating strong potential for outperformance [2][6] - Over the past quarter, AMKR shares have increased by 7.51%, and by 41.81% over the last year, outperforming the S&P 500, which has moved 7.23% and 28.67% respectively [4] Price Performance - AMKR shares have risen by 0.15% over the past week, while the Zacks Electronics - Semiconductors industry has increased by 1.45% during the same period [3] - The monthly price change for AMKR is 11.34%, compared to the industry's 8.14% performance [3] Trading Volume - AMKR's average 20-day trading volume is 990,675 shares, which serves as a bullish indicator when combined with rising stock prices [4] Earnings Outlook - In the past two months, three earnings estimates for AMKR have been revised upwards, increasing the consensus estimate from $1.63 to $1.78 [5] - For the next fiscal year, two estimates have also moved upwards, with no downward revisions noted [5]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates, research reports, and stock screens [1] Zacks Style Scores - Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum characteristics, helping investors identify securities likely to outperform the market in the short term [2] - Each stock is rated from A to F, with A indicating the highest potential for outperformance [2] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, and Price/Sales, focusing on undervalued stocks [2] Growth Score - The Growth Score assesses a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [3] Momentum Score - The Momentum Score helps investors capitalize on price trends, utilizing metrics like weekly price changes and monthly earnings estimate changes [3] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with strong value, growth, and momentum characteristics [4] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5] - There are over 800 stocks rated 1 or 2, making it essential for investors to filter through these options effectively [5] Stock to Watch: Amkor Technology (AMKR) - Amkor Technology, Inc. is a leading provider of semiconductor packaging and test services, with a strong Zacks Rank of 1 (Strong Buy) and a VGM Score of A [7] - The company has a Momentum Style Score of B, with shares increasing by 11.3% in the past four weeks [7] - Recent upward revisions in earnings estimates for fiscal 2024 have raised the Zacks Consensus Estimate by $0.15 to $1.78 per share, with an average earnings surprise of 44.3% [7][8]

Core Viewpoint - Growth investors are increasingly focused on stocks with above-average financial growth, and Amkor Technology (AMKR) is highlighted as a strong growth stock due to its favorable metrics and Zacks Rank [1][6]. Earnings Growth - Amkor Technology has a historical EPS growth rate of 42.4%, with projected EPS growth of 22.1% for the current year, significantly outperforming the industry average of -2% [3]. Asset Utilization Ratio - The company has an asset utilization ratio (sales-to-total-assets) of 0.95, indicating it generates $0.95 in sales for every dollar in assets, compared to the industry average of 0.53, showcasing superior efficiency [4]. Sales Growth - Amkor Technology's sales are expected to grow by 0.9% this year, while the industry average is stagnant at 0%, indicating a positive sales growth outlook [4]. Earnings Estimate Revisions - The current-year earnings estimates for Amkor Technology have been revised upward by 9.6% over the past month, reflecting a positive trend that correlates with potential stock price movements [5]. Overall Assessment - Amkor Technology has achieved a Growth Score of B and a Zacks Rank of 1, indicating it is a potential outperformer and a solid choice for growth investors [6][7].

Core Insights - Value investing remains a preferred strategy for identifying strong stocks across various market conditions, utilizing fundamental analysis and traditional valuation metrics to find undervalued stocks [1] Group 1: Investment Strategy - Zacks employs a ranking system focused on earnings estimates and revisions to identify winning stocks, while also considering trends in value, growth, and momentum [1] - The Style Scores system developed by Zacks highlights stocks with specific traits, particularly those with high grades in the "Value" category, which are attractive to value investors [1] Group 2: Company Analysis - Amkor Technology (AMKR) - Amkor Technology (AMKR) is currently rated 1 (Strong Buy) by Zacks and holds an A grade for Value, indicating strong potential for value investors [2] - AMKR has a P/E ratio of 16.57, significantly lower than the industry average of 35.04, suggesting it may be undervalued [2] - The Forward P/E for AMKR has fluctuated between 8.56 and 23.94 over the past year, with a median of 14.05, further indicating its valuation potential [2] - The P/S ratio for AMKR stands at 1.27, compared to the industry average of 3.8, reinforcing the notion that AMKR is likely undervalued [2] - Given the strength of its earnings outlook, AMKR is highlighted as one of the market's strongest value stocks [2]

Core Viewpoint - Amkor Technology (AMKR) has shown strong stock performance recently, returning +13.7% over the past month, outperforming the Zacks S&P 500 composite's +5% and the Zacks Electronics - Semiconductors industry's +4.6% [1] Earnings Estimate Revisions - The expected earnings for the current quarter are $0.23 per share, reflecting a year-over-year decline of -11.5%, with a recent increase in the Zacks Consensus Estimate by +36.4% [2] - For the current fiscal year, the consensus earnings estimate is $1.78, indicating a year-over-year increase of +21.9%, with a recent change of +9.6% [3] - The next fiscal year's consensus earnings estimate is $2.47, suggesting a year-over-year increase of +38.8%, with a recent change of +8.3% [3] - Amkor Technology holds a Zacks Rank 1 (Strong Buy) due to significant changes in earnings estimates and other related factors [3] Revenue Growth Potential - The consensus sales estimate for the current quarter is $1.45 billion, indicating a year-over-year change of -0.4% [5] - For the current fiscal year, the sales estimate is $6.56 billion, reflecting a +0.9% change, while the next fiscal year's estimate is $7.3 billion, indicating an +11.2% change [5] Last Reported Results and Surprise History - In the last reported quarter, Amkor Technology generated revenues of $1.37 billion, a year-over-year decline of -7.2%, with an EPS of $0.24 compared to $0.18 a year ago [6] - The reported revenues exceeded the Zacks Consensus Estimate of $1.35 billion by +1%, and the EPS surprise was +140% [6] - The company has consistently beaten consensus EPS estimates in the last four quarters and topped revenue estimates twice during this period [6] Valuation - Valuation metrics such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether Amkor Technology's stock is fairly valued [7] - The Zacks Value Style Score indicates that Amkor Technology is graded A, suggesting it is trading at a discount compared to its peers [9] Conclusion - The combination of strong earnings estimate revisions, revenue growth potential, and favorable valuation metrics suggests that Amkor Technology may outperform the broader market in the near term [10]

Any and every investor seeks to buy shares at a low price and sell high. One of the best ways to do so is to identify traditionally undervalued stocks. In this case, in the tech sector, and invest.The question then becomes: How do we reliably identify undervalued shares? Well, the current P/E ratio for the S&P 500 Information Technology Sector is 31.8. We can use that as a reasonable cut-off point. None of the stocks discussed below have a P/E ratio above that level. However, not all stocks with a P/E ratio ...