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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Ericsson (ERIC) is a stock many investors are watching right now. ERIC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 17.37 right now. For comparison, its industry sports an average P/E of 22.53. Over the last 12 months, ERIC's Forward P/E has been as high as 18.67 and as low as 9.63, with a median of 13.19.

Another notable valuation metric for ERIC is its P/B ratio of 3.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ERIC's current P/B looks attractive when compared to its industry's average P/B of 7.76. Within the past 52 weeks, ERIC's P/B has been as high as 3.69 and as low as 1.49, with a median of 1.99.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ERIC has a P/S ratio of 1.21. This compares to its industry's average P/S of 1.38.

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

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