Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Smith & Nephew SNATS (SNN) is a stock many investors are watching right now. SNN is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.95, while its industry has an average P/E of 20.92. Over the last 12 months, SNN's Forward P/E has been as high as 16.17 and as low as 11.60, with a median of 13.82.

We also note that SNN holds a PEG ratio of 0.84. 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 PEG compares to its industry's average PEG of 1.86. Within the past year, SNN's PEG has been as high as 1.47 and as low as 0.67, with a median of 1.12.

Investors should also recognize that SNN has a P/B ratio of 2.43. 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. This company's current P/B looks solid when compared to its industry's average P/B of 5.14. Over the past 12 months, SNN's P/B has been as high as 2.66 and as low as 1.98, with a median of 2.36.

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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