Back to top

Image: Bigstock

Is Bel Fuse (BELFB) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 holds a P/E ratio of 7.58, while its industry has an average P/E of 12.41. BELFB's Forward P/E has been as high as 30.26 and as low as 7.51, with a median of 19.56, all within 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BELFB has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.95.

Finally, our model also underscores that BELFB has a P/CF ratio of 4.28. 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 P/CF compares to its industry's average P/CF of 9.12. BELFB's P/CF has been as high as 5.70 and as low as 3.40, with a median of 4.37, all within the past year.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Bel Fuse Inc. (BELFB) - free report >>

Published in