Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One stock to keep an eye on is Ethan Allen Interiors Inc. (ETD). ETD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.06 right now. For comparison, its industry sports an average P/E of 23.43. Over the past 52 weeks, ETD's Forward P/E has been as high as 13.49 and as low as 10, with a median of 11.87.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ETD has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.45.

Finally, we should also recognize that ETD has a P/CF ratio of 9.96. 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. ETD's P/CF compares to its industry's average P/CF of 16.18. ETD's P/CF has been as high as 10.56 and as low as 7.95, with a median of 9.39, all within the past year.

These are only a few of the key metrics included in Ethan Allen Interiors Inc.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ETD looks like an impressive value stock at the moment.

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