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.

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 value investors might notice is Federated Hermes (FHI). FHI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.12. This compares to its industry's average Forward P/E of 17.77. Over the last 12 months, FHI's Forward P/E has been as high as 10.48 and as low as 8.42, with a median of 9.56.

Another notable valuation metric for FHI is its P/B ratio of 3.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 4.04. Within the past 52 weeks, FHI's P/B has been as high as 3.27 and as low as 2.32, with a median of 2.67.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FHI has a P/S ratio of 2.17. This compares to its industry's average P/S of 3.27.

Finally, investors should note that FHI has a P/CF ratio of 9.34. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.28. Within the past 12 months, FHI's P/CF has been as high as 9.60 and as low as 7.51, with a median of 8.52.

Value investors will likely look at more than just these metrics, but the above data helps show that Federated Hermes is likely undervalued currently. And when considering the strength of its earnings outlook, FHI sticks out at as one of the market's strongest value stocks.

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