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.

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 to watch right now is Takeda Pharmaceutical Co. (TAK). TAK is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

We should also highlight that TAK has a P/B ratio of 0.99. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.27. Within the past 52 weeks, TAK's P/B has been as high as 1.01 and as low as 0.79, with a median of 0.89.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TAK has a P/S ratio of 1.69. This compares to its industry's average P/S of 2.97.

Finally, investors will want to recognize that TAK has a P/CF ratio of 7.68. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. TAK's P/CF compares to its industry's average P/CF of 8.81. Over the past year, TAK's P/CF has been as high as 7.95 and as low as 5.84, with a median of 6.73.

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

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

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