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LFUS vs. CAMP: Which Stock Should Value Investors Buy Now?

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Investors with an interest in Electronics - Miscellaneous Components stocks have likely encountered both Littelfuse (LFUS - Free Report) and CalAmp (CAMP - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Littelfuse has a Zacks Rank of #2 (Buy), while CalAmp has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that LFUS is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.

Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

LFUS currently has a forward P/E ratio of 14.72, while CAMP has a forward P/E of 68.50. We also note that LFUS has a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAMP currently has a PEG ratio of 5.71.

Another notable valuation metric for LFUS is its P/B ratio of 3.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, CAMP has a P/B of 3.26.

These metrics, and several others, help LFUS earn a Value grade of B, while CAMP has been given a Value grade of D.

LFUS is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that LFUS is likely the superior value option right now.


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CalAmp Corp. (CAMP) - free report >>

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