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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Texas Capital Bancshares (TCBI). TCBI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.12. This compares to its industry's average Forward P/E of 11.90. Over the last 12 months, TCBI's Forward P/E has been as high as 19.08 and as low as 10.25, with a median of 15.54.

We also note that TCBI holds a PEG ratio of 0.75. 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. TCBI's PEG compares to its industry's average PEG of 1.12. Within the past year, TCBI's PEG has been as high as 2.69 and as low as 0.53, with a median of 0.76.

Another notable valuation metric for TCBI is its P/B ratio of 0.99. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TCBI's current P/B looks attractive when compared to its industry's average P/B of 1.70. Over the past year, TCBI's P/B has been as high as 1.36 and as low as 0.90, with a median of 1.11.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. TCBI has a P/S ratio of 1.56. This compares to its industry's average P/S of 1.93.

These are only a few of the key metrics included in Texas Capital Bancshares's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TCBI looks like an impressive value stock at the moment.

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

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