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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Pinnacle West Capital (PNW) is a stock many investors are watching right now. PNW is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that PNW has a P/B ratio of 1.45. Investors use the P/B ratio to look at a stock's market value versus 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 2.41. Over the past year, PNW's P/B has been as high as 1.64 and as low as 1.20, with a median of 1.39.

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. PNW has a P/S ratio of 1.93. This compares to its industry's average P/S of 2.1.

Finally, investors will want to recognize that PNW has a P/CF ratio of 4.98. 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. PNW's P/CF compares to its industry's average P/CF of 11.47. Over the past 52 weeks, PNW's P/CF has been as high as 5.50 and as low as 3.98, with a median of 4.50.

These are just a handful of the figures considered in Pinnacle West Capital'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 PNW is an impressive value stock right now.

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