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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

The Hanover Insurance Group (THG) is a stock many investors are watching right now. THG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 10.25, while its industry has an average P/E of 28.44. THG's Forward P/E has been as high as 13.52 and as low as 10.12, with a median of 11.39, all within the past year.

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. THG has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.24.

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

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The Hanover Insurance Group, Inc. (THG) : Free Stock Analysis Report

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

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