Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 6 stocks made the list for top value stocks in the Electronic Equipment, Instruments & Components industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Electronic Equipment, Instruments & Components Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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6 Undervalued Electronic Equipment, Instruments & Components Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 6 undervalued stocks in the Electronic Equipment, Instruments & Components industry for Tuesday, November 19, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electronic Equipment, Instruments & Components industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Bel Fuse Inc.’s Value Grade

Value Grade:

Bel Fuse Inc. designs, manufactures, markets, and sells products that power, protect, and connect electronic circuits. The company’s products are used in the networking, telecommunications, computing, general industrial, high-speed data transmission, military, commercial aerospace, transportation, and e-Mobility industries. It provides power solutions and protection products, including front-end power supplies, board-mount power products, industrial and transportation power products, external power products, and circuit protection products. The company also offers connectivity solutions, such as expanded beam fiber optic connectors, cable assemblies, and active optical devices; copper-based connectors/cable assemblies; radio frequency connectors, cable assemblies, microwave devices, and low loss cables; and ethernet, I/O, and industrial and power connectivity products. In addition, it provides magnetic solutions comprising integrated connector modules, power transformers, SMD power inductors and SMPS transformers, and ethernet discrete components. The company sells its products through direct strategic account managers, regional sales managers working with independent sales representative organizations, and authorized distributors in the United States, the People's Republic of China, Macao, the United Kingdom, Slovakia, Germany, India, Switzerland, and internationally. Bel Fuse Inc. was incorporated in 1949 and is headquartered in West Orange, New Jersey.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Bel Fuse Inc. has a Value Score of 64, which is considered to be undervalued.

When you look at Bel Fuse Inc.’s price-to-sales ratio at 1.76 compared to the industry median at 2.03, this company has a lower price relative to revenue compared to its peers. This could make Bel Fuse Inc.’s stock more attractive for value investors.

Bel Fuse Inc.’s price-earnings ratio is 16.80 compared to the industry median at 25.20. This means it has a lower share price relative to earnings compared to its peers. This could make Bel Fuse Inc. more attractive for value investors.

Now, let’s assess Bel Fuse Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 8.5, when compared to the industry median of 13.0, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Bel Fuse Inc.’s shareholder yield is higher than its industry median ratio of (0.10%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Bel Fuse Inc.’s price-to-book ratio is higher than its industry median ratio of 1.98. This could make Bel Fuse Inc. less attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Bel Fuse Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Bel Fuse Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 19.15. This could make Bel Fuse Inc. more attractive because the lower P/FCF ratio indicates that Bel Fuse Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Ingram Micro Holding Corporation’s Value Grade

Value Grade:

Ingram Micro Holding Corporation, through its subsidiaries, engages in the provision of technology services and solutions to vendor, reseller, and retailer partners in North America, Europe, the Middle East, Africa, the Asia-Pacific, Latin America, and internationally. The company provides Ingram Micro Cloud Marketplace service portfolio that consists of third-party cloud-based services or subscription offerings through its Ingram Micro Xvantage platform, as well as offers training, ITAD, reverse logistics, repair and other related solutions, and financial solutions. It also provides client and endpoint solutions, including desktop personal computers, notebooks, tablets, printers, application software, peripherals, accessories, and Ingram Micro branded solutions, as well as components comprising hard drives, motherboards, video cards, etc. for corporate and individual end users. In addition, the company offers enterprise grade hardware and software products, such as servers, storage, networking, infrastructure hardware and software, and hybrid and software-defined solutions, as well as cybersecurity, power and cooling, and virtualization solutions; and DC/POS, physical security, audio visual and digital signage, UCC and telephony, smart office/home automation, and artificial intelligence products. Further, it provides third-party cloud-based services and subscriptions, including business applications, security, communications and collaboration, cloud enablement solutions, and infrastructure-as-a-service solutions; and operates CloudBlue digital commerce platform that offers multi-channel and multi-tier catalog management, subscription management, billing, and orchestration solutions through a SaaS model. The company was founded in 1979 and is headquartered in Irvine, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Ingram Micro Holding Corporation has a Value Score of 77, which is considered to be undervalued.

Ingram Micro Holding Corporation’s price-earnings ratio is 15.9 compared to the industry median at 25.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Ingram Micro Holding Corporation more attractive for value investors.

Ingram Micro Holding Corporation’s price-to-book ratio is higher than its peers. This could make Ingram Micro Holding Corporation less attractive for value investors when compared to the industry median at 1.98.

You can read more about Ingram Micro Holding Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

RF Industries, Ltd.’s Value Grade

Value Grade:

RF Industries, Ltd., together with its subsidiaries, designs, manufactures, and markets interconnect products and systems in the United States, Canada, Italy, Mexico, and internationally. The company operates through two segments, RF Connector and Cable Assembly, and Custom Cabling Manufacturing and Assembly. The company designs, manufactures, and distributes various coaxial connectors and cable assemblies that are integrated with coaxial connectors; custom copper and fiber cable assemblies, complex hybrid fiber optic and power solution cables, adapters, and electromechanical wiring harnesses for communication, computer, LAN, automotive, and medical equipment; energy-efficient cooling systems for wireless base stations and remote equipment shelters; and custom-designed pole-ready 5G small cell integrated enclosures. It also designs and manufactures cable assemblies and wiring harnesses for blue chip industrial, oilfield, instrumentation, medical, and military customers; connectivity solutions to telecommunications and data communications distributors; thermal control systems; and radio frequency and microwave distribution system products, such as dividers, directional couplers, and filters. The company sells its products through warehousing distributors and in-house marketing and sales team. It serves telecommunications carriers and equipment manufacturers, wireless and network infrastructure carriers, and original equipment manufacturers. The company was formerly known as Celltronics, Inc. and changed its name RF Industries, Ltd. in November 1990. RF Industries, Ltd. was incorporated in 1979 and is headquartered in San Diego, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

RF Industries, Ltd. has a Value Score of 73, which is considered to be undervalued.

RF Industries, Ltd.’s price-to-book ratio is higher than its peers. This could make RF Industries, Ltd. less attractive for value investors when compared to the industry median at 1.98.

You can read more about RF Industries, Ltd.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

TD SYNNEX Corporation’s Value Grade

Value Grade:

TD SYNNEX Corporation operates as a distributor and solutions aggregator for the information technology (IT) ecosystem. The company offers personal computing devices and peripherals, mobile phones and accessories, printers, supplies, and endpoint technology software; and data center technologies, such as hybrid cloud, security, storage, networking, servers, technology software, and converged and hyper-converged infrastructure, as well as computing components. It also provides systems design and rack integration, build-to-order, and configure-to-order assembly; and thermal testing, power-draw testing, burn-in, and quality and logistics support. In addition, the company offers outsourced fulfillment, virtual distribution, and direct ship to end-users; shipping documents generation, multi-level serial number tracking, and configured products and online order and shipment tracking, as well as turn-key logistics solutions. Further, it provides public cloud solutions in productivity and collaboration, IaaS, or Infrastructure as a Service, PaaS, or Platform as a Service, SaaS, or Software as a Service, security, mobility, IoT, and other hybrid solutions. Additionally, the company offers online services; provides net terms, third party leasing, floor plan financing, and letters-of-credit backed financing and arrangement; and leases products and provides device-as-a-service, as well as offers direct mail, external media advertising, reseller product training, targeted telemarketing campaigns, national and regional trade shows, trade groups, database analysis, print on demand services, and web-based marketing. It serves value-added resellers, corporate resellers, government resellers, system integrators, direct marketers, retailers, and managed service providers. The company was formerly known as SYNNEX Corporation and changed its name to TD SYNNEX Corporation in September 2021. TD SYNNEX Corporation was founded in 1974 and is headquartered in Fremont, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

TD SYNNEX Corporation has a Value Score of 89, which is considered to be undervalued.

TD SYNNEX Corporation’s price-earnings ratio is 15.0 compared to the industry median at 25.2. This means that it has a lower price relative to its earnings compared to its peers. This makes TD SYNNEX Corporation more attractive for value investors.

TD SYNNEX Corporation’s price-to-book ratio is higher than its peers. This could make TD SYNNEX Corporation less attractive for value investors when compared to the industry median at 1.98.

You can read more about TD SYNNEX Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Taitron Components Incorporated’s Value Grade

Value Grade:

Taitron Components Incorporated engages in the supply of original designed and manufactured (ODM) electronic components, and distribution of brand name electronic components. It distributes discrete semiconductors, commodity integrated circuits, optoelectronic devices, and passive components. The company also offers value-added engineering and turn-key solutions focusing on providing contract electronic manufacturers (CEMs) and original equipment manufacturers (OEMs) with ODM products for their turn-key projects. It serves other electronic distributors, CEMs, and OEMs in the United States, South Korea, China, Taiwan, and internationally. The company has strategic allies with Teamforce Co. Ltd.; Grand Shine Management; and Zowie Technology Corporation. Taitron Components Incorporated was incorporated in 1989 and is headquartered in Valencia, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Taitron Components Incorporated has a Value Score of 65, which is considered to be undervalued.

Taitron Components Incorporated’s price-earnings ratio is 12.4 compared to the industry median at 25.2. This means that it has a lower price relative to its earnings compared to its peers. This makes Taitron Components Incorporated more attractive for value investors.

Taitron Components Incorporated’s price-to-book ratio is higher than its peers. This could make Taitron Components Incorporated less attractive for value investors when compared to the industry median at 1.98.

You can read more about Taitron Components Incorporated’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Zepp Health Corporation’s Value Grade

Value Grade:

Zepp Health Corporation operates as a smart wearable and health technology company worldwide. The company operates in two segments: Self-Branded Products and Others, and Xiaomi Wearable Products. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company through its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors, and data algorithms, delivers cloud-based 24/7 actionable insights and guidance to help users attain wellness goals. The company offers smart bands, watches, modules, and scales; and associated accessories, smart hearable products, sportswear, home fitness equipment, home appliances, and smart watch accessories. It also provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. It offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is headquartered in Hefei, the People’s Republic of China.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Zepp Health Corporation has a Value Score of 72, which is considered to be undervalued.

Zepp Health Corporation’s price-to-book ratio is higher than its peers. This could make Zepp Health Corporation less attractive for value investors when compared to the industry median at 1.98.

You can read more about Zepp Health Corporation’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Electronic Equipment, Instruments & Components Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Electronic Equipment, Instruments & Components stocks as well as other industrys.

Choosing Which of the 6 Best Electronic Equipment, Instruments & Components Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Bel Fuse Inc. stock has a Value Grade of B.
• Ingram Micro Holding Corporation stock has a Value Grade of B.
• RF Industries, Ltd. stock has a Value Grade of B.
• TD SYNNEX Corporation stock has a Value Grade of A.
• Taitron Components Incorporated stock has a Value Grade of B.
• Zepp Health Corporation stock has a Value Grade of B.

Now that you have a bit more background about each of the 6 undervalued stocks in the Electronic Equipment, Instruments & Components industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Electronic Equipment, Instruments & Components Stocks

Want to learn more about Electronic Equipment, Instruments & Components stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 6 Undervalued Electronic Equipment, Instruments & Components Stocks for Tuesday, November 19
• 5 Undervalued Electronic Equipment, Instruments & Components Stocks for Monday, November 18
• 4 Undervalued Electronic Equipment, Instruments & Components Stocks for Friday, November 15
• 7 Undervalued Electronic Equipment, Instruments & Components Stocks for Thursday, November 14

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