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 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.

One company value investors might notice is Covestro AG Sponsored ADR (COVTY Quick QuoteCOVTY - Free Report) . COVTY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is COVTY's P/B ratio of 1.02. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.16. Over the past year, COVTY's P/B has been as high as 1.82 and as low as 0.87, with a median of 1.50.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. COVTY has a P/S ratio of 0.39. This compares to its industry's average P/S of 0.52.

Finally, investors should note that COVTY has a P/CF ratio of 4.63. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. COVTY's current P/CF looks attractive when compared to its industry's average P/CF of 5.96. Over the past 52 weeks, COVTY's P/CF has been as high as 5.12 and as low as 3.44, with a median of 3.95.

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