Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 First American Financial (FAF). FAF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 12.71, which compares to its industry's average of 27.93. Over the last 12 months, FAF's Forward P/E has been as high as 15.31 and as low as 9.77, with a median of 12.25.

Investors should also recognize that FAF has a P/B ratio of 1.27. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. FAF's current P/B looks attractive when compared to its industry's average P/B of 1.59. FAF's P/B has been as high as 1.48 and as low as 1.12, with a median of 1.28, over the past year.

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. FAF has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.21.

If you're looking for another solid Insurance - Property and Casualty value stock, take a look at The Hanover Insurance Group (THG). THG is a # 2 (Buy) stock with a Value score of A.

The Hanover Insurance Group is currently trading with a Forward P/E ratio of 11.31 while its PEG ratio sits at 0.42. Both of the company's metrics compare favorably to its industry's average P/E of 27.93 and average PEG ratio of 2.77.

Over the last 12 months, THG's P/E has been as high as 150.83, as low as 10.22, with a median of 11.66, and its PEG ratio has been as high as 4.10, as low as 0.31, with a median of 0.34.

Furthermore, The Hanover Insurance Group holds a P/B ratio of 1.85 and its industry's price-to-book ratio is 1.59. THG's P/B has been as high as 2.17, as low as 1.72, with a median of 1.90 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that First American Financial and The Hanover Insurance Group are likely undervalued currently. And when considering the strength of its earnings outlook, FAF and THG sticks out as one of the market's strongest value stocks.

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