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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

New Gold (NGD) is a stock many investors are watching right now. NGD is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.82, which compares to its industry's average of 12.52. Over the last 12 months, NGD's Forward P/E has been as high as 24.11 and as low as 9.81, with a median of 13.33.

Investors should also note that NGD holds a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NGD's PEG compares to its industry's average PEG of 0.41. Over the past 52 weeks, NGD's PEG has been as high as 0.64 and as low as 0.23, with a median of 0.45.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NGD has a P/S ratio of 2.48. This compares to its industry's average P/S of 2.82.

Finally, investors should note that NGD has a P/CF ratio of 7.93. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 13.06. Over the past year, NGD's P/CF has been as high as 9.59 and as low as 4.42, with a median of 7.25.

These are only a few of the key metrics included in New Gold'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, NGD looks like an impressive value stock at the moment.

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