Is It Time To Consider Buying Amkor Technology, Inc. (NASDAQ:AMKR)? – Yahoo Finance

Posted: February 27, 2021 at 3:33 am

While Amkor Technology, Inc. (NASDAQ:AMKR) might not be the most widely known stock at the moment, it saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. As a US$5.8b market-cap stock, it seems odd Amkor Technology is not more well-covered by analysts. Although, there is more of an opportunity for mispricing in stocks with low coverage, which can be a good thing. So, could the stock still be trading at a low price relative to its actual value? Today I will analyse the most recent data on Amkor Technologys outlook and valuation to see if the opportunity still exists.

See our latest analysis for Amkor Technology

Good news, investors! Amkor Technology is still a bargain right now according to my price multiple model, which compares the company's price-to-earnings ratio to the industry average. Ive used the price-to-earnings ratio in this instance because theres not enough visibility to forecast its cash flows. The stocks ratio of 17.14x is currently well-below the industry average of 41.52x, meaning that it is trading at a cheaper price relative to its peers. Whats more interesting is that, Amkor Technologys share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market.


Future outlook is an important aspect when youre looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that its the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 62% over the next couple of years, the future seems bright for Amkor Technology. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation.

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Are you a shareholder? Since AMKR is currently below the industry PE ratio, it may be a great time to accumulate more of your holdings in the stock. With an optimistic outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as financial health to consider, which could explain the current price multiple.

Are you a potential investor? If youve been keeping an eye on AMKR for a while, now might be the time to make a leap. Its prosperous future profit outlook isnt fully reflected in the current share price yet, which means its not too late to buy AMKR. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision.

If you want to dive deeper into Amkor Technology, you'd also look into what risks it is currently facing. For example, we've discovered 3 warning signs that you should run your eye over to get a better picture of Amkor Technology.

If you are no longer interested in Amkor Technology, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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Is It Time To Consider Buying Amkor Technology, Inc. (NASDAQ:AMKR)? - Yahoo Finance

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