ASE technologies is a semiconductor manufacturing company with the stock symbol NYSE: ASX. ASE develops materials and electronics and offers solutions for engineering tests, packaging and water probing, etc. Different sectors in which it operates are-
- Electronic Manufacturing Services or EMS
- Estates and others
Why does it hold great value in the market?
Value investing in NYSE: ASX stocks at https://www.webull.com/quote/nyse-asx is of great strategy nowadays because these have low PEs, decent dividends, and solid outlooks.
- Forward PE of the company is 11.76%
- It has a high P/S ratio equals to 0.69
- The dividend yield is a great 2.4%
- the investor has to pay a lower level per dollar of the earned sum.
Risks faced by an investor while investing in stocks and ways to manage them.
Before investing in stock, an investor must be aware of the risks associated with it. A few of them are as discussed below-
- There is no guarantee of returns. Even if the stocks have been performing well over time, there is no guarantee that same will be the case in the future.
- Stock price change might make you lose the money you have invested.
To reduce the risk of losing all the money, you can invest in different sectors.
Potential risks for stock owners
There are many risks in investing, here are general risks that every stock faces-
- Commodity price- Fluctuation in the price of commodities affects the company’s profit and loss directly.
- Headline risk- Risk posed by a bad quotation published in the media. The bad news about the company can trigger a market backlash and affect a company or sector.
- Rating risk- It occurs when a business is given a digit to either reach or maintain. Change in the ratings directly affect the company’s reputation.
- Obsolescence risk- When a product or service offered by a company to make a profit becomes obsolete, the profit earned by the company decreases.
- Legislative risk- Any government actions that might constraint the functioning of the company.
- Inflation risk- The rise in the price of goods depreciate the buying power of the currency.
- Interest risk- Change in the rate of interest charged by the lender.
Short term fluctuations are quite prevalent, but stocks perform better in greater time duration. Before investing in NYSE: ASX you must be well acquainted with stock market terminology and have a deep understanding of the same. You should also read your terms and conditions thoroughly before taking of decision to invest in it. You can do stock trading after knowing how to start trading stocks.
Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.August 26, 2020