Should Value Investors Buy Bel Fuse (BELFB) Stock?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Bel Fuse (BELFB). BELFB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 9.01, while its industry has an average P/E of 16.17. Over the past year, BELFB's Forward P/E has been as high as 15.52 and as low as 7.08, with a median of 9.37.
Another valuation metric that we should highlight is BELFB's P/B ratio of 2.23. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.89. Over the past year, BELFB's P/B has been as high as 2.74 and as low as 1.41, with a median of 1.93.
Finally, investors should note that BELFB has a P/CF ratio of 7.95. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 18.16. Within the past 12 months, BELFB's P/CF has been as high as 9.93 and as low as 5.10, with a median of 7.16.
These are just a handful of the figures considered in Bel Fuse's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that BELFB is an impressive value stock right now.
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
Bel Fuse Inc. (BELFB) : Free Stock Analysis Report
