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

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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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Bel Fuse (BELFB - Free Report) is a stock many investors are watching right now. BELFB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 10.60 right now. For comparison, its industry sports an average P/E of 13.51. 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 8.86.

Investors should also recognize that BELFB has a P/B ratio of 1.83. 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 4.22. Over the past 12 months, BELFB's P/B has been as high as 1.83 and as low as 0.71, with a median of 0.95.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BELFB has a P/S ratio of 0.64. This compares to its industry's average P/S of 0.69.

Finally, our model also underscores that BELFB has a P/CF ratio of 6.62. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.66. Over the past 52 weeks, BELFB's P/CF has been as high as 6.62 and as low as 3.40, with a median of 4.50.

Another great Electronics - Miscellaneous Products stock you could consider is Flex (FLEX - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Shares of Flex currently holds a Forward P/E ratio of 8.47, and its PEG ratio is 0.62. In comparison, its industry sports average P/E and PEG ratios of 13.51 and 1.42.

FLEX's Forward P/E has been as high as 10.20 and as low as 6.28, with a median of 8.09. During the same time period, its PEG ratio has been as high as 0.82, as low as 0.42, with a median of 0.56.

Flex sports a P/B ratio of 2.20 as well; this compares to its industry's price-to-book ratio of 4.22. In the past 52 weeks, FLEX's P/B has been as high as 2.60, as low as 1.58, with a median of 2.03.

Value investors will likely look at more than just these metrics, but the above data helps show that Bel Fuse and Flex are likely undervalued currently. And when considering the strength of its earnings outlook, BELFB and FLEX sticks out as one of the market's strongest value stocks.


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