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.

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.

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 to watch right now is KB Home (KBH). KBH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.75 right now. For comparison, its industry sports an average P/E of 11.30. Over the past 52 weeks, KBH's Forward P/E has been as high as 10.11 and as low as 5.72, with a median of 8.33.

Investors should also note that KBH holds a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KBH's industry currently sports an average PEG of 0.87. Over the past 52 weeks, KBH's PEG has been as high as 0.87 and as low as 0.63, with a median of 0.76.

Investors should also recognize that KBH has a P/B ratio of 1.47. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.89. Over the past 12 months, KBH's P/B has been as high as 1.65 and as low as 0.88, with a median of 1.31.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KBH has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.11.

Finally, we should also recognize that KBH has a P/CF ratio of 9.32. 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. KBH's current P/CF looks attractive when compared to its industry's average P/CF of 10.54. Within the past 12 months, KBH's P/CF has been as high as 10.48 and as low as 5.04, with a median of 8.15.

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

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