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Are Investors Undervaluing Bel Fuse (BELFB) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Bel Fuse (BELFB - Free Report) . BELFB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.30, while its industry has an average P/E of 14.95. Over the past year, BELFB's Forward P/E has been as high as 30.26 and as low as 7.26, with a median of 9.22.

We should also highlight that BELFB has a P/B ratio of 1.49. 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. This company's current P/B looks solid when compared to its industry's average P/B of 3.87. BELFB's P/B has been as high as 1.49 and as low as 0.71, with a median of 0.88, over the past year.

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 0.57. This compares to its industry's average P/S of 0.89.

Finally, investors should note that BELFB has a P/CF ratio of 6.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BELFB's current P/CF looks attractive when compared to its industry's average P/CF of 11.18. Within the past 12 months, BELFB's P/CF has been as high as 6.25 and as low as 3.40, with a median of 4.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Bel Fuse is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BELFB feels like a great value stock at the moment.


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