The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Allegiant (ALGT) is a stock many investors are watching right now. ALGT is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.84 right now. For comparison, its industry sports an average P/E of 15.24. Over the last 12 months, ALGT's Forward P/E has been as high as 61.81 and as low as 6.50, with a median of 10.34.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ALGT has a P/S ratio of 0.41. This compares to its industry's average P/S of 0.53.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Allegiant is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ALGT feels like a great value stock at the moment.

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Allegiant Travel Company (ALGT) : Free Stock Analysis Report

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

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