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

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 company to watch right now is Encompass Health (EHC). EHC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 21.66 right now. For comparison, its industry sports an average P/E of 21.91. Over the past 52 weeks, EHC's Forward P/E has been as high as 22.24 and as low as 16.91, with a median of 19.76.

Investors will also notice that EHC has a PEG ratio of 1.23. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. EHC's PEG compares to its industry's average PEG of 1.93. Within the past year, EHC's PEG has been as high as 1.50 and as low as 1.19, with a median of 1.30.

Investors should also recognize that EHC has a P/B ratio of 3.85. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.10. Over the past 12 months, EHC's P/B has been as high as 3.94 and as low as 2.97, with a median of 3.53.

Finally, we should also recognize that EHC has a P/CF ratio of 14.39. 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. EHC's current P/CF looks attractive when compared to its industry's average P/CF of 26.24. EHC's P/CF has been as high as 14.61 and as low as 10.34, with a median of 12.80, all within the past year.

These are only a few of the key metrics included in Encompass Health'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, EHC looks like an impressive value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Encompass Health Corporation (EHC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research