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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Meritor (MTOR). MTOR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 7.18, which compares to its industry's average of 10.97. Over the past year, MTOR's Forward P/E has been as high as 7.53 and as low as 4.75, with a median of 6.50.

Finally, we should also recognize that MTOR has a P/CF ratio of 6.21. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. MTOR's P/CF compares to its industry's average P/CF of 6.51. MTOR's P/CF has been as high as 8.91 and as low as 4.21, with a median of 5.10, all within the past year.

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

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