Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

PACCAR (PCAR) is a stock many investors are watching right now. PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that PCAR has a PEG ratio of 1.69. 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. PCAR's PEG compares to its industry's average PEG of 3.57. PCAR's PEG has been as high as 1.90 and as low as 1.05, with a median of 1.63, all within the past year.

Another valuation metric that we should highlight is PCAR's P/B ratio of 2.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 7.16. Over the past year, PCAR's P/B has been as high as 4.10 and as low as 2.71, with a median of 3.23.

Finally, investors should note that PCAR has a P/CF ratio of 10.23. 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. PCAR's P/CF compares to its industry's average P/CF of 31.57. Over the past 52 weeks, PCAR's P/CF has been as high as 11.84 and as low as 8.17, with a median of 9.79.

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

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