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.

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 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.

Encore Capital Group (ECPG Quick QuoteECPG - Free Report) is a stock many investors are watching right now. ECPG is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.17, while its industry has an average P/E of 10.03. ECPG's Forward P/E has been as high as 9.37 and as low as 4.14, with a median of 6.34, all within 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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ECPG has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.57.

These are just a handful of the figures considered in Encore Capital Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ECPG is an impressive value stock right now.