Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is Murata Manufacturing (MRAAY). MRAAY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 12.05, which compares to its industry's average of 27.60. Over the past year, MRAAY's Forward P/E has been as high as 24.74 and as low as 12.05, with a median of 19.36.

Another valuation metric that we should highlight is MRAAY's P/B ratio of 1.87. 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. MRAAY's current P/B looks attractive when compared to its industry's average P/B of 5.43. Within the past 52 weeks, MRAAY's P/B has been as high as 2.72 and as low as 1.84, with a median of 2.24.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. MRAAY has a P/S ratio of 2.71. This compares to its industry's average P/S of 3.03.

Finally, our model also underscores that MRAAY has a P/CF ratio of 12.69. 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 39.01. Within the past 12 months, MRAAY's P/CF has been as high as 17.94 and as low as 12.69, with a median of 14.01.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Murata Manufacturing is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, MRAAY feels like a great value stock at the moment.

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