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.

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.

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.

Patria Investments Limited (PAX) is a stock many investors are watching right now. PAX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.63, which compares to its industry's average of 17.04. Over the past year, PAX's Forward P/E has been as high as 11.39 and as low as 7.67, with a median of 8.43.

Another valuation metric that we should highlight is PAX's P/B ratio of 1.52. The P/B ratio pits a stock's market value against 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 3.88. Within the past 52 weeks, PAX's P/B has been as high as 1.66 and as low as 1.31, with a median of 1.45.

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. PAX has a P/S ratio of 1.91. This compares to its industry's average P/S of 3.29.

Finally, our model also underscores that PAX has a P/CF ratio of 17.50. 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 34.87. Over the past year, PAX's P/CF has been as high as 20.46 and as low as 12.37, with a median of 16.11.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Patria Investments Limited is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PAX 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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