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Is Bel Fuse (BELFB) Stock Undervalued 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, 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.

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 value investors might notice 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 is trading with a P/E ratio of 8.79, which compares to its industry's average of 16.66. 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 8.40.

Another valuation metric that we should highlight is BELFB's P/B ratio of 1.91. The P/B ratio pits a stock's market value against 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 4. Over the past 12 months, BELFB's P/B has been as high as 2 and as low as 0.71, with a median of 1.11.

Finally, our model also underscores that BELFB has a P/CF ratio of 7.13. 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 10. BELFB's P/CF has been as high as 7.44 and as low as 3.40, with a median of 5.16, all within the past year.

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


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