Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
One stock to keep an eye on is Bel Fuse (BELFB). BELFB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.29, while its industry has an average P/E of 18.19. Over the last 12 months, BELFB's Forward P/E has been as high as 15.52 and as low as 7.53, with a median of 9.39.
Another notable valuation metric for BELFB is its P/B ratio of 1.93. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.86. BELFB's P/B has been as high as 2.74 and as low as 1.34, with a median of 1.85, over the past year.
Finally, we should also recognize that BELFB has a P/CF ratio of 6.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.21. BELFB's P/CF has been as high as 9.93 and as low as 4.97, with a median of 6.90, all within the past year.
These are only a few of the key metrics included in Bel Fuse'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, BELFB looks like an impressive value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report