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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is Nexa Resources (NEXA). NEXA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.73, which compares to its industry's average of 13.18. NEXA's Forward P/E has been as high as 41.29 and as low as -113.19, with a median of 11.85, all within the past year.

NEXA is also sporting a PEG ratio of 0.34. 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. NEXA's PEG compares to its industry's average PEG of 0.61. Over the last 12 months, NEXA's PEG has been as high as 0.42 and as low as 0.11, with a median of 0.25.

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

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

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