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.

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.

Nomad Foods Limited (NOMD) is a stock many investors are watching right now. NOMD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.52, while its industry has an average P/E of 15.92. Over the past 52 weeks, NOMD's Forward P/E has been as high as 10.54 and as low as 7.79, with a median of 9.

Another notable valuation metric for NOMD is its P/B ratio of 1.03. 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 attractive against its industry's average P/B of 1.98. Within the past 52 weeks, NOMD's P/B has been as high as 1.16 and as low as 0.88, with a median of 1.01.

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. NOMD has a P/S ratio of 0.89. This compares to its industry's average P/S of 0.94.

Finally, investors should note that NOMD has a P/CF ratio of 8.78. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.92. Over the past 52 weeks, NOMD's P/CF has been as high as 10.19 and as low as 7.09, with a median of 8.89.

These are just a handful of the figures considered in Nomad Foods Limited's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NOMD is an impressive value stock right now.

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

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