Are Investors Undervaluing Bel Fuse (BELFB) Right Now?
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Bel Fuse (BELFB). BELFB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.74 right now. For comparison, its industry sports an average P/E of 15.05. Over the past 52 weeks, BELFB's Forward P/E has been as high as 15.52 and as low as 7.08, with a median of 9.38.
We should also highlight that BELFB has a P/B ratio of 2.15. Investors use the P/B ratio to look at a stock's market value versus 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 3.98. Within the past 52 weeks, BELFB's P/B has been as high as 2.74 and as low as 1.41, with a median of 1.92.
Finally, investors will want to recognize that BELFB has a P/CF ratio of 7.68. 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. BELFB's P/CF compares to its industry's average P/CF of 12.81. BELFB's P/CF has been as high as 9.93 and as low as 5.10, with a median of 7.04, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Bel Fuse is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BELFB feels like a great value stock at the moment.
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Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
