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.

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.

AZZ (AZZ) is a stock many investors are watching right now. AZZ is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 14.32 right now. For comparison, its industry sports an average P/E of 21.51. Over the past 52 weeks, AZZ's Forward P/E has been as high as 17.81 and as low as 13.74, with a median of 15.22.

We also note that AZZ holds a PEG ratio of 1.02. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AZZ's PEG compares to its industry's average PEG of 2.06. Within the past year, AZZ's PEG has been as high as 1.27 and as low as 0.98, with a median of 1.09.

Another notable valuation metric for AZZ is its P/B ratio of 2.43. 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. This stock's P/B looks solid versus its industry's average P/B of 4.82. AZZ's P/B has been as high as 3.69 and as low as 2.19, with a median of 2.74, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AZZ has a P/S ratio of 1.57. This compares to its industry's average P/S of 2.55.

Finally, investors should note that AZZ has a P/CF ratio of 11.56. 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. AZZ's P/CF compares to its industry's average P/CF of 40.19. AZZ's P/CF has been as high as 13.67 and as low as 9.38, with a median of 11.10, all within the past year.

These are only a few of the key metrics included in AZZ's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AZZ looks like an impressive value stock at the moment.

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

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