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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Smith & Nephew SNATS (SNN). SNN is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.59, which compares to its industry's average of 21.05. SNN's Forward P/E has been as high as 16.17 and as low as 11.60, with a median of 13.91, all within the past year.

Investors will also notice that SNN has a PEG ratio of 0.88. 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. SNN's industry has an average PEG of 2.00 right now. Over the past 52 weeks, SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.12.

Another notable valuation metric for SNN is its P/B ratio of 2.55. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. SNN's current P/B looks attractive when compared to its industry's average P/B of 5.15. SNN's P/B has been as high as 2.66 and as low as 1.98, with a median of 2.37, over the past year.

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

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Smith & Nephew SNATS, Inc. (SNN):Free Stock Analysis Report

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

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