While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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.

Avista (AVA) is a stock many investors are watching right now. AVA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.25, which compares to its industry's average of 14.67. Over the last 12 months, AVA's Forward P/E has been as high as 16.03 and as low as 13.92, with a median of 14.96.

Another notable valuation metric for AVA is its P/B ratio of 1.15. 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. AVA's current P/B looks attractive when compared to its industry's average P/B of 2.08. Over the past year, AVA's P/B has been as high as 1.29 and as low as 1.04, with a median of 1.18.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AVA has a P/S ratio of 1.55. This compares to its industry's average P/S of 2.28.

Finally, investors will want to recognize that AVA has a P/CF ratio of 6.52. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AVA's current P/CF looks attractive when compared to its industry's average P/CF of 8.65. Over the past year, AVA's P/CF has been as high as 7.30 and as low as 5.66, with a median of 6.44.

Story Continues

Investors could also keep in mind Pampa Energia (PAM), an Utility - Electric Power stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Pampa Energia currently holds a Forward P/E ratio of 6.78, and its PEG ratio is 0.41. In comparison, its industry sports average P/E and PEG ratios of 14.67 and 1.87.

Over the last 12 months, PAM's P/E has been as high as 12.13, as low as 5.52, with a median of 7.44, and its PEG ratio has been as high as 0.45, as low as 0.41, with a median of 0.43.

Furthermore, Pampa Energia holds a P/B ratio of 1.39 and its industry's price-to-book ratio is 2.08. PAM's P/B has been as high as 1.57, as low as 0.76, with a median of 1.12 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Avista and Pampa Energia are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AVA and PAM feels like a great value stock at the moment.

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

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