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Are Investors Undervaluing Bel Fuse (BELFB) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Bel Fuse (BELFB - Free Report) . BELFB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.08, which compares to its industry's average of 16.40. Over the past 52 weeks, BELFB's Forward P/E has been as high as 15.52 and as low as 7.08, with a median of 9.41.

Another notable valuation metric for BELFB is its P/B ratio of 2.49. 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 stock's P/B looks solid versus its industry's average P/B of 4.11. BELFB's P/B has been as high as 2.74 and as low as 1.41, with a median of 2, over the past year.

Finally, we should also recognize that BELFB has a P/CF ratio of 8.89. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. BELFB's current P/CF looks attractive when compared to its industry's average P/CF of 18.91. Within the past 12 months, BELFB's P/CF has been as high as 9.93 and as low as 5.10, with a median of 7.23.

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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