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.

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 stock to keep an eye on is Cracker Barrel Old Country Store (CBRL). CBRL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 14.09. This compares to its industry's average Forward P/E of 24.20. Over the past 52 weeks, CBRL's Forward P/E has been as high as 22.15 and as low as 9.19, with a median of 13.72.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CBRL has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.7.

Finally, we should also recognize that CBRL has a P/CF ratio of 5.81. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 21.39. Over the past 52 weeks, CBRL's P/CF has been as high as 8.49 and as low as 4.58, with a median of 5.81.

These are only a few of the key metrics included in Cracker Barrel Old Country Store'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, CBRL looks like an impressive value stock at the moment.

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Cracker Barrel Old Country Store, Inc. (CBRL) : Free Stock Analysis Report

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

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