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Should Value Investors Buy Bel Fuse (BELFB) Stock?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 to watch right now is Bel Fuse (BELFB - Free Report) . BELFB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.64, which compares to its industry's average of 12.59. Over the past year, BELFB's Forward P/E has been as high as 30.26 and as low as 7.57, with a median of 20.45.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BELFB has a P/S ratio of 0.35. This compares to its industry's average P/S of 1.02.

Finally, our model also underscores that BELFB has a P/CF ratio of 4.31. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.69. Over the past 52 weeks, BELFB's P/CF has been as high as 5.70 and as low as 3.40, with a median of 4.41.

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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