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.

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

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.

One stock to keep an eye on is American Outdoor Brands (AOUT). AOUT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 13.83, while its industry has an average P/E of 24.48. Over the last 12 months, AOUT's Forward P/E has been as high as 22.50 and as low as 11.96, with a median of 14.99.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AOUT has a P/S ratio of 0.56. This compares to its industry's average P/S of 0.97.

Finally, investors should note that AOUT has a P/CF ratio of 22.65. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AOUT's current P/CF looks attractive when compared to its industry's average P/CF of 28.45. AOUT's P/CF has been as high as 31.98 and as low as 17.70, with a median of 22.62, all within the past year.

These are just a handful of the figures considered in American Outdoor Brands's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that AOUT is an impressive value stock right now.

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American Outdoor Brands, Inc. (AOUT) : Free Stock Analysis Report

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