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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Merck KGaA (MKKGY). MKKGY is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.

Investors will also notice that MKKGY has a PEG ratio of 1.85. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. MKKGY's PEG compares to its industry's average PEG of 1.99. Over the past 52 weeks, MKKGY's PEG has been as high as 2.31 and as low as 1.40, with a median of 2.01.

Finally, investors will want to recognize that MKKGY has a P/CF ratio of 6.30. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 12.68. MKKGY's P/CF has been as high as 17.18 and as low as 5.95, with a median of 7.25, all within the past year.

USANA Health Sciences (USNA) may be another strong Medical - Drugs stock to add to your shortlist. USNA is a Zacks Rank of #2 (Buy) stock with a Value grade of A.

USANA Health Sciences is trading at a forward earnings multiple of 10.36 at the moment, with a PEG ratio of 0.86. This compares to its industry's average P/E of 42.68 and average PEG ratio of 1.99.

Over the last 12 months, USNA's P/E has been as high as 17.00, as low as 7.83, with a median of 11.26, and its PEG ratio has been as high as 1.42, as low as 0.65, with a median of 0.94.

Additionally, USANA Health Sciences has a P/B ratio of 1.11 while its industry's price-to-book ratio sits at 1.63. For USNA, this valuation metric has been as high as 1.72, as low as 0.83, with a median of 1.22 over the past year.

Story Continues

These are only a few of the key metrics included in Merck KGaA and USANA Health Sciences strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MKKGY and USNA look like an impressive value stock at the moment.

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

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