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.

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 stock to keep an eye on is Melco Resorts & Entertainment Limited (MLCO). MLCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 16.07. This compares to its industry's average Forward P/E of 28.97. Over the past year, MLCO's Forward P/E has been as high as 32.84 and as low as -45.06, with a median of 20.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MLCO has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.13.

Finally, investors will want to recognize that MLCO has a P/CF ratio of 8. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. MLCO's current P/CF looks attractive when compared to its industry's average P/CF of 28.34. Over the past 52 weeks, MLCO's P/CF has been as high as 24.25 and as low as 5.90, with a median of 10.55.

Value investors will likely look at more than just these metrics, but the above data helps show that Melco Resorts & Entertainment Limited is likely undervalued currently. And when considering the strength of its earnings outlook, MLCO sticks out at 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

Melco Resorts & Entertainment Limited (MLCO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research