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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Ringcentral (RNG) is a stock many investors are watching right now. RNG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.51, while its industry has an average P/E of 20.62. Over the past 52 weeks, RNG's Forward P/E has been as high as 10.63 and as low as 6.89, with a median of 8.73.

We also note that RNG holds a PEG ratio of 0.37. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. RNG's PEG compares to its industry's average PEG of 0.96. Over the last 12 months, RNG's PEG has been as high as 0.48 and as low as 0.24, with a median of 0.35.

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. RNG has a P/S ratio of 1.2. This compares to its industry's average P/S of 2.53.

Finally, investors will want to recognize that RNG has a P/CF ratio of 11.02. 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. RNG's P/CF compares to its industry's average P/CF of 13.08. Over the past 52 weeks, RNG's P/CF has been as high as 16.16 and as low as -126.77, with a median of 11.82.

These are only a few of the key metrics included in Ringcentral's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, RNG looks like an impressive 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

Ringcentral, Inc. (RNG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research