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 value investors might notice is PACCAR (PCAR). PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors will also notice that PCAR has a PEG ratio of 2.75. 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. PCAR's industry has an average PEG of 4.02 right now. Over the last 12 months, PCAR's PEG has been as high as 2.76 and as low as 1.12, with a median of 1.64.

Investors should also recognize that PCAR has a P/B ratio of 3.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. PCAR's current P/B looks attractive when compared to its industry's average P/B of 7.78. Over the past 12 months, PCAR's P/B has been as high as 4.10 and as low as 2.71, with a median of 3.23.

Finally, we should also recognize that PCAR has a P/CF ratio of 10.74. 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. PCAR's current P/CF looks attractive when compared to its industry's average P/CF of 33.48. PCAR's P/CF has been as high as 11.84 and as low as 8.17, with a median of 10.05, all within the past year.

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

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