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Should Value Investors Buy Bel Fuse (BELFB) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Bel Fuse (BELFB - Free Report) is a stock many investors are watching right now. BELFB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.31, which compares to its industry's average of 11.52. Over the past 52 weeks, BELFB's Forward P/E has been as high as 30.26 and as low as 7.26, with a median of 8.91.

Another valuation metric that we should highlight is BELFB's P/B ratio of 1.49. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.73. Over the past 12 months, BELFB's P/B has been as high as 1.57 and as low as 0.71, with a median of 0.93.

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 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 0.55. This compares to its industry's average P/S of 0.63.

Finally, investors should note that BELFB has a P/CF ratio of 6.28. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.51. Over the past 52 weeks, BELFB's P/CF has been as high as 6.60 and as low as 3.40, with a median of 4.43.

Investors could also keep in mind Universal Electronics (UEIC - Free Report) , an Electronics - Miscellaneous Products stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Universal Electronics is trading at a forward earnings multiple of 6.59 at the moment, with a PEG ratio of 1.02. This compares to its industry's average P/E of 11.52 and average PEG ratio of 1.12.

UEIC's price-to-earnings ratio has been as high as 11.62 and as low as 6.54, with a median of 9.44, while its PEG ratio has been as high as 1.16 and as low as 0.51, with a median of 1.02, all within the past year.

Additionally, Universal Electronics has a P/B ratio of 0.82 while its industry's price-to-book ratio sits at 3.73. For UEIC, this valuation metric has been as high as 2.21, as low as 0.82, with a median of 1.41 over the past year.

These are just a handful of the figures considered in Bel Fuse and Universal Electronics'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 and UEIC is an impressive value stock right now.


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