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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Advance Auto Parts (AAP). AAP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.18, while its industry has an average P/E of 23.71. Over the past 52 weeks, AAP's Forward P/E has been as high as 32.99 and as low as -94.12, with a median of 15.93.

We also note that AAP holds a PEG ratio of 1.49. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AAP's PEG compares to its industry's average PEG of 1.55. Over the last 12 months, AAP's PEG has been as high as 2.36 and as low as -6.72, with a median of 1.12.

These are just a handful of the figures considered in Advance Auto Parts'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 AAP is an impressive value stock right now.

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Advance Auto Parts, Inc. (AAP):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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