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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is PRA Group (PRAA). PRAA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 9.17, which compares to its industry's average of 14.79. Over the last 12 months, PRAA's Forward P/E has been as high as 38.49 and as low as 8.21, with a median of 12.20.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 0.74. This compares to its industry's average P/S of 1.78.

Finally, we should also recognize that PRAA has a P/CF ratio of 9.09. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 14.58. Within the past 12 months, PRAA's P/CF has been as high as 197.20 and as low as -18.40, with a median of 14.73.

These are just a handful of the figures considered in PRA Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PRAA is an impressive value stock right now.

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PRA Group, Inc. (PRAA) : Free Stock Analysis Report

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

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