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Bel Fuse Inc. (BELFB) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of Bel Fuse (BELFB - Free Report) ? Shares have been on the move with the stock up 19.2% over the past month. The stock hit a new 52-week high of $64.76 in the previous session. Bel Fuse has gained 93.2% since the start of the year compared to the 50% move for the Zacks Computer and Technology sector and the 24.6% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2023, Bel Fuse reported EPS of $1.55 versus consensus estimate of $1.19 while it beat the consensus revenue estimate by 0.43%.
For the current fiscal year, Bel Fuse is expected to post earnings of $6.28 per share on $650.8 million in revenues. This represents a 36.23% change in EPS on a -0.52% change in revenues. For the next fiscal year, the company is expected to earn $6.22 per share on $650 million in revenues. This represents a year-over-year change of -0.96% and -0.12%, respectively.
Valuation Metrics
Bel Fuse may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bel Fuse has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.5X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 9.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Bel Fuse currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bel Fuse passes the test. Thus, it seems as though Bel Fuse shares could still be poised for more gains ahead.
How Does BELFB Stack Up to the Competition?
Shares of BELFB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Flex Ltd. (FLEX - Free Report) . FLEX has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Flex Ltd. beat our consensus estimate by 17.24%, and for the current fiscal year, FLEX is expected to post earnings of $2.56 per share on revenue of $28.46 billion.
Shares of Flex Ltd. have gained 8.6% over the past month, and currently trade at a forward P/E of 11.19X and a P/CF of 8.7X.
The Electronics - Miscellaneous Products industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BELFB and FLEX, even beyond their own solid fundamental situation.
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Bel Fuse Inc. (BELFB) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Bel Fuse (BELFB - Free Report) ? Shares have been on the move with the stock up 19.2% over the past month. The stock hit a new 52-week high of $64.76 in the previous session. Bel Fuse has gained 93.2% since the start of the year compared to the 50% move for the Zacks Computer and Technology sector and the 24.6% return for the Zacks Electronics - Miscellaneous Products industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 25, 2023, Bel Fuse reported EPS of $1.55 versus consensus estimate of $1.19 while it beat the consensus revenue estimate by 0.43%.
For the current fiscal year, Bel Fuse is expected to post earnings of $6.28 per share on $650.8 million in revenues. This represents a 36.23% change in EPS on a -0.52% change in revenues. For the next fiscal year, the company is expected to earn $6.22 per share on $650 million in revenues. This represents a year-over-year change of -0.96% and -0.12%, respectively.
Valuation Metrics
Bel Fuse may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Bel Fuse has a Value Score of A. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 10.1X current fiscal year EPS estimates, which is not in-line with the peer industry average of 18.5X. On a trailing cash flow basis, the stock currently trades at 11.3X versus its peer group's average of 9.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Bel Fuse currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Bel Fuse passes the test. Thus, it seems as though Bel Fuse shares could still be poised for more gains ahead.
How Does BELFB Stack Up to the Competition?
Shares of BELFB have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Flex Ltd. (FLEX - Free Report) . FLEX has a Zacks Rank of # 1 (Strong Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of F.
Earnings were strong last quarter. Flex Ltd. beat our consensus estimate by 17.24%, and for the current fiscal year, FLEX is expected to post earnings of $2.56 per share on revenue of $28.46 billion.
Shares of Flex Ltd. have gained 8.6% over the past month, and currently trade at a forward P/E of 11.19X and a P/CF of 8.7X.
The Electronics - Miscellaneous Products industry may rank in the bottom 64% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for BELFB and FLEX, even beyond their own solid fundamental situation.