Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 5 stocks made the list for top value stocks in the Electrical Components & Equipment 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.

Latest Electrical Components & Equipment Stock News

Before choosing which top Electrical Components & Equipment stock to buy, be sure to conduct proper due diligence: analyze various financial metrics and look at historical data, public statements and news coverage.

Our fundamental outlook for the Electrical Components & Equipment industry remains neutral. The industry consists largely of companies that produce electric cables and wires, electrical equipment, transformers, motors and generators, wiring devices, power supply systems, fuel cells, lighting, and solar power systems. Valuations for the group are currently more in line with historical averages following share price recovery from sharp declines early in 2020 due to macroeconomic uncertainty from numerous headwinds, including the still-evolving total impact of Covid-19. We forecast that the industry results will show more material recovery in 2022, when we expect some headwinds created by recovery to abate. We anticipate growth to be up in 2021, reflecting the start of recovery from Covid-19 and strength in utility markets and benefits from integration with 5G and electric vehicles. In 2021, we anticipate growth to be slightly muted by supply chain constraints, rising input costs, and the semiconductor shortage. Our fundamental outlook reflects data from the National Electrical Manufacturers Association’s Electroindustry Business Conditions Index. The June 2021 reading rose to 70 from 65.4 in May 2021, due to improved industry sentiment, but noting some impacts from the supply chain and inflation. Most respondents see better or unchanged conditions, and no respondents see declining conditions, which we think it indicative that recovery has taken hold in the sub-industry. Our opinion also reflects recent data from the Institute for Supply Management’s Purchasing Managers Index (PMI).

Why Focus on Undervalued Electrical Components & Equipment 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.

Click the button below to learn more about A+ Investor and subscribe today.

5 Undervalued Electrical Components & Equipment Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 5 undervalued stocks in the Electrical Components & Equipment industry for Thursday, February 09, 2023. Let’s take a closer look at their individual scores to see how they measure up against each other and the Electrical Components & Equipment 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.

Applied UV Inc’s Value Grade

Value Grade:

Applied UV, Inc. is engaged in developing and acquiring infection prevention and control technology in the healthcare, commercial and public venue, food processing/storage, cannabis, and education and vertical markets. Its disinfectant segment is engaged in the design, manufacture, assembly and distribution of disinfecting systems for use in healthcare, hospitality, and commercial municipal and residential markets. Its hospitality segment is engaged in the manufacture of mirrors specifically for the hospitality industry. It also offers a complete air and surface disinfection platform that includes consumer, fixed and, mobile and commercial applications. Its software platform inter-connects its portfolio of ultraviolet (UV) technology solutions. The Company has two wholly owned subsidiaries, such as SteriLumen, Inc. (SteriLumen) and Munn Works, LLC (Munn Works). SteriLumen owns and markets a portfolio of products with pathogen elimination technology.

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.

Applied UV Inc has a Value Score of 62, which is considered to be undervalued.

When you look at Applied UV Inc’s price-to-sales ratio at 0.82 compared to the industry median at 1.80, this company has a lower price relative to revenue compared to its peers. This could make Applied UV Inc’s stock more attractive for value investors.

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. Applied UV Inc’s shareholder yield is lower than its industry median ratio of (0.67%). 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. Applied UV Inc’s price-to-book ratio is lower than its industry median ratio of 2.60. This could make Applied UV Inc more attractive to investors looking for a new addition to their portfolio.

TDK Corp (ADR)’s Value Grade

Value Grade:

TDK Corp is a Japan-based company mainly engaged in the manufacture and sale of passive components, sensor application products, magnetic application products and energy application products. The Company operates through four business segments. The Passive Components segment is engaged in the provision of ceramic capacitors, aluminum electrolytic capacitors, film capacitors, inductive devices, high frequency components, piezoelectric material components and circuit protection components. The Sensor Application Products segment is engaged in the provision of temperature and pressure sensors, magnetic sensors and micro electromechanical system (MEMS) sensors. The Magnetic Application Products segment is engaged in the provision of hard disk drive (HDD) heads, HDD suspensions and magnets. The Energy Application Products segment is engaged in the provision of energy devices and power supplies. The Company is also engaged in the provision of mechatronics and micro actuators products.

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.

TDK Corp (ADR) has a Value Score of 84, which is considered to be undervalued.

TDK Corp (ADR)’s price-earnings ratio is 11.7 compared to the industry median at 18.9. This means that it has a lower price relative to its earnings compared to its peers. This makes TDK Corp (ADR) more attractive for value investors.

TDK Corp (ADR)’s price-to-book ratio is higher than its peers. This could make TDK Corp (ADR) less attractive for value investors when compared to the industry median at 2.60.

You can read more about TDK Corp (ADR)’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.

Ultralife Corp.’s Value Grade

Value Grade:

Ultralife Corporation offers products and services ranging from power solutions to communications and electronics systems. Its designs and manufactures power and communications systems, including rechargeable and non-rechargeable batteries, charging systems, communications and electronics systems and accessories, and custom engineered systems related to those product lines. Its segments include Battery & Energy Products and Communications Systems. The Battery & Energy Products segment includes lithium 9-volt, cylindrical, thin cell and other non-rechargeable batteries, in addition to rechargeable batteries, uninterruptable power supplies, charging systems and accessories. The Communications Systems segment includes radio frequency amplifiers, power supplies, cable and connector assemblies, amplified speakers, equipment mounts, case equipment, man-portable systems, integrated communication systems for fixed or vehicle applications and communications and electronics systems design.

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.

Ultralife Corp. has a Value Score of 62, which is considered to be undervalued.

Ultralife Corp.’s price-to-book ratio is higher than its peers. This could make Ultralife Corp. less attractive for value investors when compared to the industry median at 2.60.

You can read more about Ultralife Corp.’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.

Encore Wire Corp’s Value Grade

Value Grade:

Encore Wire Corporation is a manufacturer of electrical building wire and cable. The Company is a supplier of building wire for interior electrical wiring in commercial and industrial buildings, homes, apartments, manufactured housing, and data centers. The Company offers an electrical building wire product line that consists primarily of NM-B cable, UF-B cable, THHN/THWN-2, XHHW-2, USE-2, RHH/RHW-2 and other types of wire products, including service entrance unarmored (SEU), service entrance cable (SER), Photovoltaic, underground residential distribution wire (URD), tray cable, metal-clad and armored cable. The Company serves various markets, such as healthcare, data center, airport expansion, military bases, oil and gas, transit, wastewater treatment, school construction, and power generation. The Company markets its products throughout the United States primarily through independent manufacturers, representatives, and through its own direct in-house marketing.

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.

Encore Wire Corp has a Value Score of 93, which is considered to be undervalued.

Encore Wire Corp’s price-earnings ratio is 4.7 compared to the industry median at 18.9. This means that it has a lower price relative to its earnings compared to its peers. This makes Encore Wire Corp more attractive for value investors.

Encore Wire Corp’s price-to-book ratio is higher than its peers. This could make Encore Wire Corp less attractive for value investors when compared to the industry median at 2.60.

You can read more about Encore Wire Corp’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.

mPhase Technologies Inc’s Value Grade

Value Grade:

mPhase Technologies, Inc. is a technology company. The Company is focused on consumer engagement using data analytics and artificial intelligence to create a monetizable link between consumers and retailers at opportunistic times and places. It is engaged in assembling industry teams specializing in artificial intelligence, machine learning, software, consumer engagement and other advanced technologies. It is focused on building a connected ecosystem of electric vehicle (EV) charging and software solutions that optimize consumer engagement within the framework of a software as-a service (SaaS) / testing as a service (TaaS) model. Its connected eco-system is branded under the mPower brand, where the ecosystem is tailored to everyone?s tastes and needs, with a particular emphasis on empowering tomorrow?s green consumer. Its Travel Buddhi is a software platform to improve travel via ultra-customization tools that tailor a planned trip experience in ways not previously available.

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.

mPhase Technologies Inc has a Value Score of 84, which is considered to be undervalued.

mPhase Technologies Inc’s price-to-book ratio is higher than its peers. This could make mPhase Technologies Inc less attractive for value investors when compared to the industry median at 2.60.

You can read more about mPhase Technologies Inc’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 Electrical Components & Equipment 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 Electrical Components & Equipment stocks as well as other industrys.

Choosing Which of the 5 Best Electrical Components & Equipment 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.

• Applied UV Inc stock has a Value Grade of B.
• TDK Corp (ADR) stock has a Value Grade of A.
• Ultralife Corp. stock has a Value Grade of B.
• Encore Wire Corp stock has a Value Grade of A.
• mPhase Technologies Inc stock has a Value Grade of A.

Now that you have a bit more background about each of the 5 undervalued stocks in the Electrical Components & Equipment 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 Electrical Components & Equipment Stocks

Want to learn more about Electrical Components & Equipment 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.

• 5 Undervalued Electrical Components & Equipment Stocks for Thursday, February 09
• 4 Undervalued Electrical Components & Equipment Stocks for Wednesday, February 08
• 4 Undervalued Electrical Components & Equipment Stocks for Tuesday, February 07
• 4 Undervalued Electrical Components & Equipment Stocks for Monday, February 06

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.