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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Banco Santander (SAN). SAN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.94, while its industry has an average P/E of 8.70. Over the past 52 weeks, SAN's Forward P/E has been as high as 7.93 and as low as 4.97, with a median of 5.65.

Another valuation metric that we should highlight is SAN's P/B ratio of 0.85. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.83. Over the past year, SAN's P/B has been as high as 0.97 and as low as 0.61, with a median of 0.68.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SAN has a P/S ratio of 1.19. This compares to its industry's average P/S of 1.31.

Finally, investors should note that SAN has a P/CF ratio of 4.98. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 15.65. Within the past 12 months, SAN's P/CF has been as high as 5.59 and as low as 4.27, with a median of 4.79.

These are only a few of the key metrics included in Banco Santander'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, SAN looks like an impressive value stock at the moment.

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Banco Santander, S.A. (SAN) : Free Stock Analysis Report

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

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