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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Leidos (LDOS). LDOS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 12.22, while its industry has an average P/E of 22.45. Over the past 52 weeks, LDOS's Forward P/E has been as high as 20.34 and as low as 12.02, with a median of 16.45.

LDOS is also sporting a PEG ratio of 1.65. 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. LDOS's industry currently sports an average PEG of 1.85. Over the past 52 weeks, LDOS's PEG has been as high as 2.06 and as low as 0.85, with a median of 1.48.

Another valuation metric that we should highlight is LDOS's P/B ratio of 3.87. 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 attractive against its industry's average P/B of 4.48. Over the past 12 months, LDOS's P/B has been as high as 5.76 and as low as 3.79, with a median of 4.50.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. LDOS has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.57.

Finally, we should also recognize that LDOS has a P/CF ratio of 11.21. 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. LDOS's P/CF compares to its industry's average P/CF of 28.18. Over the past year, LDOS's P/CF has been as high as 18.38 and as low as 11.01, with a median of 15.25.

These are only a few of the key metrics included in Leidos'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, LDOS 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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