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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Urban Outfitters (URBN). URBN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.81. This compares to its industry's average Forward P/E of 17.92. Over the last 12 months, URBN's Forward P/E has been as high as 14.69 and as low as 9.02, with a median of 11.45.

Another notable valuation metric for URBN is its P/B ratio of 2.17. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 5.70. Over the past 12 months, URBN's P/B has been as high as 2.37 and as low as 1.40, with a median of 1.81.

Finally, investors should note that URBN has a P/CF ratio of 10.59. 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 stock's P/CF looks attractive against its industry's average P/CF of 14.95. Over the past year, URBN's P/CF has been as high as 12.80 and as low as 7.56, with a median of 9.84.

Value investors will likely look at more than just these metrics, but the above data helps show that Urban Outfitters is likely undervalued currently. And when considering the strength of its earnings outlook, URBN sticks out at as one of the market's strongest value stocks.

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Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

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

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