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.

RLJ Lodging Trust (RLJ) is a stock many investors are watching right now. RLJ is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.60, which compares to its industry's average of 14.98. RLJ's Forward P/E has been as high as 7.21 and as low as 5.54, with a median of 6.28, all within the past year.

Investors should also note that RLJ holds a PEG ratio of 1.97. 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. RLJ's industry has an average PEG of 2.14 right now. Over the last 12 months, RLJ's PEG has been as high as 2.03 and as low as 0.70, with a median of 0.80.

Another notable valuation metric for RLJ is its P/B ratio of 0.82. 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 1.71. Within the past 52 weeks, RLJ's P/B has been as high as 0.96 and as low as 0.70, with a median of 0.80.

Finally, investors should note that RLJ has a P/CF ratio of 5.56. 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 15.39. Over the past 52 weeks, RLJ's P/CF has been as high as 6.48 and as low as 4.74, with a median of 5.44.

These figures are just a handful of the metrics value investors tend to look at, but they help show that RLJ Lodging Trust is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, RLJ feels like a great value stock at the moment.

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