Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Grupo Financiero Banorte (GBOOY) is a stock many investors are watching right now. GBOOY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.36. This compares to its industry's average Forward P/E of 21.85. GBOOY's Forward P/E has been as high as 8.29 and as low as 5.98, with a median of 6.77, all within the past year.

Investors should also note that GBOOY holds a PEG ratio of 0.88. 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. GBOOY's industry currently sports an average PEG of 1.28. Over the past 52 weeks, GBOOY's PEG has been as high as 0.97 and as low as 0.61, with a median of 0.74.

Another notable valuation metric for GBOOY is its P/B ratio of 1.81. The P/B is a method of comparing a stock's market value to 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 3.78. GBOOY's P/B has been as high as 1.94 and as low as 1.29, with a median of 1.50, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GBOOY has a P/S ratio of 1.13. This compares to its industry's average P/S of 2.08.

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

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

Grupo Financiero Banorte SAB de CV (GBOOY) : Free Stock Analysis Report

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

Zacks Investment Research