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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Ethan Allen Interiors Inc. (ETD) is a stock many investors are watching right now. ETD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 11.68 right now. For comparison, its industry sports an average P/E of 23.82. Over the past 52 weeks, ETD's Forward P/E has been as high as 13.49 and as low as 9.74, with a median of 11.80.

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. ETD has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.54.

Finally, our model also underscores that ETD has a P/CF ratio of 9.21. 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 16.43. ETD's P/CF has been as high as 10.44 and as low as 7.77, with a median of 9.24, all within the past year.

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

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