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Is Bel Fuse (BELFB) Stock Undervalued Right Now?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 - Free Report) . BELFB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.10. This compares to its industry's average Forward P/E of 16.38. Over the past year, BELFB's Forward P/E has been as high as 30.26 and as low as 8.85, with a median of 22.31.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BELFB has a P/S ratio of 0.4. This compares to its industry's average P/S of 1.

Finally, our model also underscores that BELFB has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BELFB's current P/CF looks attractive when compared to its industry's average P/CF of 13.68. BELFB's P/CF has been as high as 9.48 and as low as 3.41, with a median of 4.47, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Bel Fuse is likely undervalued currently. And when considering the strength of its earnings outlook, BELFB sticks out at as one of the market's strongest value stocks.


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