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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Leidos (LDOS). LDOS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.02 right now. For comparison, its industry sports an average P/E of 21.55. Over the past year, LDOS's Forward P/E has been as high as 20.34 and as low as 12.02, with a median of 16.33.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. LDOS has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.54.

Finally, we should also recognize that LDOS has a P/CF ratio of 12.11. 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. This stock's P/CF looks attractive against its industry's average P/CF of 37.60. Over the past year, LDOS's P/CF has been as high as 18.38 and as low as 11.01, with a median of 14.97.

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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Leidos Holdings, Inc. (LDOS) : Free Stock Analysis Report

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

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