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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One stock to keep an eye on is PRA Group (PRAA). PRAA 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 8.61, which compares to its industry's average of 13.90. PRAA's Forward P/E has been as high as 44.95 and as low as 8.61, with a median of 12.65, all within the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PRAA has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.77.

Finally, investors should note that PRAA has a P/CF ratio of 8.50. 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. PRAA's P/CF compares to its industry's average P/CF of 16.03. Over the past year, PRAA's P/CF has been as high as 197.20 and as low as -18.40, with a median of 14.73.

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

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This article originally published on Zacks Investment Research (zacks.com).

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