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.

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.

SunCoke Energy (SXC) is a stock many investors are watching right now. SXC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.13 right now. For comparison, its industry sports an average P/E of 14.96. Over the past 52 weeks, SXC's Forward P/E has been as high as 19.21 and as low as 9.29, with a median of 13.40.

Another notable valuation metric for SXC is its P/B ratio of 0.95. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SXC's current P/B looks attractive when compared to its industry's average P/B of 1.77. Over the past year, SXC's P/B has been as high as 1.55 and as low as 0.87, with a median of 1.06.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SXC has a P/S ratio of 0.43. This compares to its industry's average P/S of 1.11.

Finally, investors should note that SXC has a P/CF ratio of 3.61. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.59. Within the past 12 months, SXC's P/CF has been as high as 5.13 and as low as 3.20, with a median of 3.70.

These are just a handful of the figures considered in SunCoke Energy'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 SXC is an impressive value stock right now.

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SunCoke Energy, Inc. (SXC): Free Stock Analysis Report

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

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