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.

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 company value investors might notice is Cardinal Health (CAH). CAH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.62, which compares to its industry's average of 16.97. Over the past 52 weeks, CAH's Forward P/E has been as high as 15.66 and as low as 12.37, with a median of 14.26.

Investors should also note that CAH holds a PEG ratio of 1.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CAH's PEG compares to its industry's average PEG of 1.86. CAH's PEG has been as high as 1.55 and as low as 0.91, with a median of 1.38, all within the past year.

Finally, investors will want to recognize that CAH has a P/CF ratio of 15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 17.80. Over the past year, CAH's P/CF has been as high as 20.81 and as low as 13.22, with a median of 15.34.

These are only a few of the key metrics included in Cardinal Health'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, CAH looks like an impressive value stock at the moment.

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Cardinal Health, Inc. (CAH) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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