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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Stone Energy (TALO) is a stock many investors are watching right now. TALO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We should also highlight that TALO has a P/B ratio of 0.67. 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 2. Over the past year, TALO's P/B has been as high as 0.97 and as low as 0.63, with a median of 0.78.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TALO has a P/S ratio of 1.05. This compares to its industry's average P/S of 1.89.

Finally, investors should note that TALO has a P/CF ratio of 2.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. TALO's P/CF compares to its industry's average P/CF of 5.59. TALO's P/CF has been as high as 2.79 and as low as 1.58, with a median of 2.19, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Stone Energy is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TALO feels like a great value stock at the moment.

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