Editor's note: As part of our partnership with PBS's Nightly Business Report, TheStreet's David Peltier joined NBR Monday (watch video and see transcript here) to explain where to find value stocks after October's monster rally.
NEW YORK (TheStreet) -- The benchmark S&P 500 index is on track to close out October with its largest monthly gain in nearly 25 years. That said, investors should not be scared to seek out value in certain pockets of the market.I had the honor of attending a Value Stock seminar hosted by the Columbia Business School last week and to rub elbows with some of the best money managers in the business. The key takeaway from the meeting is that value does exist in the current environment, if you know where to look for it. One of key metrics I use for finding oversold stocks is to look for profitable companies that trade below tangible book value. Book value is the accounting term given to the value of a company's common shareholder equity and it generally serves as a valuation floor for the stock. This is especially true when a company has high-quality assets; rather than a balance sheet that's bloated with intangible assets, such as goodwill.