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 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 Tri Pointe Homes (TPH). TPH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 9.08. This compares to its industry's average Forward P/E of 11.72. TPH's Forward P/E has been as high as 11.01 and as low as 6.44, with a median of 8.78, all within the past year.

TPH is also sporting a PEG ratio of 0.70. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TPH's industry has an average PEG of 0.91 right now. TPH's PEG has been as high as 0.87 and as low as 0.50, with a median of 0.68, all within the past year.

Another valuation metric that we should highlight is TPH's P/B ratio of 1.33. 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 1.96. Within the past 52 weeks, TPH's P/B has been as high as 1.39 and as low as 0.81, with a median of 1.14.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. TPH has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.15.

Finally, we should also recognize that TPH has a P/CF ratio of 8.80. 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 10.86. Within the past 12 months, TPH's P/CF has been as high as 9.65 and as low as 5.11, with a median of 8.51.

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

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Tri Pointe Homes Inc. (TPH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research