Should Value Investors Buy Bel Fuse (BELFB) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Bel Fuse (BELFB) is a stock many investors are watching right now. BELFB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 9.20, which compares to its industry's average of 18.32. 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 9.37.
Another valuation metric that we should highlight is BELFB's P/B ratio of 2.15. 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 attractive against its industry's average P/B of 3.79. BELFB's P/B has been as high as 2.74 and as low as 1.34, with a median of 1.81, over the past year.
Finally, our model also underscores that BELFB has a P/CF ratio of 7.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.56. Over the past 52 weeks, BELFB's P/CF has been as high as 9.93 and as low as 4.97, with a median of 6.83.
Another great Electronics - Miscellaneous Products stock you could consider is Brother Industries (BRTHY), which is a # 2 (Buy) stock with a Value Score of A.
Brother Industries sports a P/B ratio of 0.99 as well; this compares to its industry's price-to-book ratio of 3.79. In the past 52 weeks, BRTHY's P/B has been as high as 1.10, as low as 0.81, with a median of 0.91.
These are only a few of the key metrics included in Bel Fuse and Brother Industries strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BELFB and BRTHY look like an impressive value stock at the moment.
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Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
Brother Industries Ltd. (BRTHY) : Free Stock Analysis Report
