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 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.

Leidos (LDOS) is a stock many investors are watching right now. LDOS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 12.61, which compares to its industry's average of 22.19. LDOS's Forward P/E has been as high as 20.34 and as low as 12.61, with a median of 16.45, all within the past year.

LDOS is also sporting a PEG ratio of 0.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LDOS's industry has an average PEG of 1.74 right now. Over the past 52 weeks, LDOS's PEG has been as high as 2.06 and as low as 0.85, with a median of 1.48.

Another valuation metric that we should highlight is LDOS's P/B ratio of 3.74. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.41. Over the past year, LDOS's P/B has been as high as 5.76 and as low as 3.74, with a median of 4.48.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. LDOS has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.71.

Finally, investors will want to recognize that LDOS has a P/CF ratio of 11.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. LDOS's P/CF compares to its industry's average P/CF of 27.67. Within the past 12 months, LDOS's P/CF has been as high as 18.38 and as low as 11.93, with a median of 15.27.

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

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