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.

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.

One company to watch right now is Skechers (SKX). SKX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.19, while its industry has an average P/E of 25.95. Over the past year, SKX's Forward P/E has been as high as 18.15 and as low as 11.91, with a median of 15.17.

Investors should also note that SKX holds a PEG ratio of 0.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SKX's industry currently sports an average PEG of 1.63. SKX's PEG has been as high as 1.23 and as low as 0.43, with a median of 0.84, all within the past year.

Finally, investors should note that SKX has a P/CF ratio of 11.55. 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 16.11. Within the past 12 months, SKX's P/CF has been as high as 14.79 and as low as 10.16, with a median of 13.04.

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

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Skechers U.S.A., Inc. (SKX) : Free Stock Analysis Report

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