Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 Medallion Financial (MFIN). MFIN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.33, while its industry has an average P/E of 9.39. Over the past 52 weeks, MFIN's Forward P/E has been as high as 6.36 and as low as 3.85, with a median of 4.74.

Another notable valuation metric for MFIN is its P/B ratio of 0.46. 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 0.96. Over the past 12 months, MFIN's P/B has been as high as 0.55 and as low as 0.38, with a median of 0.45.

Finally, investors should note that MFIN has a P/CF ratio of 4.09. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.03. MFIN's P/CF has been as high as 4.42 and as low as 2.48, with a median of 3.38, 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 Medallion Financial is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MFIN feels like a great value stock at the moment.

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

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