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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company value investors might notice is American Axle & Manufacturing Holdings (AXL). AXL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.18 right now. For comparison, its industry sports an average P/E of 13.02. Over the last 12 months, AXL's Forward P/E has been as high as 36.52 and as low as -50.32, with a median of 16.16.

Another valuation metric that we should highlight is AXL's P/B ratio of 1.21. The P/B ratio pits a stock's market value against 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 1.74. Over the past year, AXL's P/B has been as high as 1.70 and as low as 1.07, with a median of 1.37.

Denso (DNZOY) may be another strong Automotive - Original Equipment stock to add to your shortlist. DNZOY is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Denso has a P/B ratio of 1.04 while its industry's price-to-book ratio sits at 1.74. For DNZOY, this valuation metric has been as high as 1.68, as low as 1.04, with a median of 1.25 over the past year.

These are only a few of the key metrics included in American Axle & Manufacturing Holdings and Denso strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AXL and DNZOY look 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

American Axle & Manufacturing Holdings, Inc. (AXL):Free Stock Analysis Report



Denso Corp. (DNZOY):Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research