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.

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.

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 stock to keep an eye on is Watford Holdings (WTRE Quick QuoteWTRE - Free Report) . WTRE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. WTRE has a P/S ratio of 0.37. This compares to its industry's average P/S of 0.7.

Finally, we should also recognize that WTRE has a P/CF ratio of 4.98. 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 15.10. Over the past year, WTRE's P/CF has been as high as 5,322.82 and as low as -53.82, with a median of 8.73.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Watford Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WTRE feels like a great value stock at the moment.