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Should Value Investors Buy Bel Fuse (BELFB) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 is trading with P/E ratio of 9.55 right now. For comparison, its industry sports an average P/E of 18.43. BELFB's Forward P/E has been as high as 30.26 and as low as 8.85, with a median of 21.76, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BELFB has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.02.

Finally, investors should note that BELFB has a P/CF ratio of 5.30. 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 current P/CF looks attractive when compared to its industry's average P/CF of 17.71. BELFB's P/CF has been as high as 8.31 and as low as 3.40, with a median of 4.47, all within the past year.

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.


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