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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Edison International (EIX) is a stock many investors are watching right now. EIX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.51, while its industry has an average P/E of 15.07. Over the past 52 weeks, EIX's Forward P/E has been as high as 16.23 and as low as 8.63, with a median of 14.14.

EIX is also sporting a PEG ratio of 1.36. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. EIX's industry has an average PEG of 1.91 right now. Within the past year, EIX's PEG has been as high as 1.91 and as low as 1.02, with a median of 1.33.

Another valuation metric that we should highlight is EIX's P/B ratio of 1.29. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.15. EIX's P/B has been as high as 2.09 and as low as 1.18, with a median of 1.80, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EIX has a P/S ratio of 1.3. This compares to its industry's average P/S of 2.31.

Finally, investors should note that EIX has a P/CF ratio of 3.59. 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 8.91. Over the past 52 weeks, EIX's P/CF has been as high as 8.21 and as low as 3.27, with a median of 6.96.

Story Continues

These are just a handful of the figures considered in Edison International'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 EIX is an impressive value stock right now.

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

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