Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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 company to watch right now is Deutsche Telekom (DTEGY). DTEGY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.11 right now. For comparison, its industry sports an average P/E of 15.75. Over the last 12 months, DTEGY's Forward P/E has been as high as 16.16 and as low as 11.25, with a median of 12.66.

We also note that DTEGY holds a PEG ratio of 1.13. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. DTEGY's PEG compares to its industry's average PEG of 1.67. Within the past year, DTEGY's PEG has been as high as 2.25 and as low as 0.88, with a median of 1.20.

We should also highlight that DTEGY has a P/B ratio of 1.48. 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. This stock's P/B looks attractive against its industry's average P/B of 2. DTEGY's P/B has been as high as 1.59 and as low as 1.09, with a median of 1.26, over the past year.

Telefonica (TEF) may be another strong Diversified Communication Services stock to add to your shortlist. TEF is a # 2 (Buy) stock with a Value grade of A.

Telefonica is trading at a forward earnings multiple of 12.29 at the moment, with a PEG ratio of 3.01. This compares to its industry's average P/E of 15.75 and average PEG ratio of 1.67.

Over the past year, TEF's P/E has been as high as 14.75, as low as 11.90, with a median of 13.24; its PEG ratio has been as high as 3.10, as low as 1.61, with a median of 1.20 during the same time period.

Additionally, Telefonica has a P/B ratio of 0.87 while its industry's price-to-book ratio sits at 2. For TEF, this valuation metric has been as high as 1.04, as low as 0.65, with a median of 0.89 over the past year.

These are just a handful of the figures considered in Deutsche Telekom and Telefonica'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 DTEGY and TEF is an impressive value stock right now.

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

Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report

Telefonica SA (TEF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research