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.

One company value investors might notice is Eagle Bancorp (EGBN). EGBN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 9.43. This compares to its industry's average Forward P/E of 10.51. EGBN's Forward P/E has been as high as 15.48 and as low as 7.61, with a median of 10.91, all within the past year.

Another valuation metric that we should highlight is EGBN's P/B ratio of 0.56. 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 1.29. Over the past year, EGBN's P/B has been as high as 0.74 and as low as 0.39, with a median of 0.56.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGBN has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.81.

Finally, investors should note that EGBN has a P/CF ratio of 10.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EGBN's current P/CF looks attractive when compared to its industry's average P/CF of 12.92. Within the past 12 months, EGBN's P/CF has been as high as 12.84 and as low as 5.76, with a median of 8.57.

These are just a handful of the figures considered in Eagle Bancorp's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EGBN is an impressive value stock right now.

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

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