While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

MI Homes (MHO) is a stock many investors are watching right now. MHO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.29. This compares to its industry's average Forward P/E of 10.66. Over the past year, MHO's Forward P/E has been as high as 8.92 and as low as 4.79, with a median of 7.43.

We should also highlight that MHO has a P/B ratio of 1.47. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. MHO's current P/B looks attractive when compared to its industry's average P/B of 1.60. Within the past 52 weeks, MHO's P/B has been as high as 1.74 and as low as 0.99, with a median of 1.40.

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. MHO has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.03.

Finally, investors will want to recognize that MHO has a P/CF ratio of 7.75. 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. MHO's P/CF compares to its industry's average P/CF of 10.22. MHO's P/CF has been as high as 9.03 and as low as 4.90, with a median of 7.38, 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 MI Homes is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MHO feels like a great value stock at the moment.

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