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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Amphastar Pharmaceuticals (AMPH) is a stock many investors are watching right now. AMPH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

We also note that AMPH holds a PEG ratio of 0.79. 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. AMPH's industry has an average PEG of 1.09 right now. Over the past 52 weeks, AMPH's PEG has been as high as 0.97 and as low as 0.53, with a median of 0.74.

Another valuation metric that we should highlight is AMPH's P/B ratio of 3.40. 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 stock's P/B looks attractive against its industry's average P/B of 3.98. Within the past 52 weeks, AMPH's P/B has been as high as 5.10 and as low as 2.54, with a median of 3.28.

Finally, we should also recognize that AMPH has a P/CF ratio of 11.24. 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. AMPH's P/CF compares to its industry's average P/CF of 28.71. Within the past 12 months, AMPH's P/CF has been as high as 19.33 and as low as 8.34, with a median of 10.95.

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

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