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Are Investors Undervaluing bpost (BPOSY) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One stock to keep an eye on is bpost (BPOSY - Free Report) . BPOSY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 5.54, while its industry has an average P/E of 10.59. Over the last 12 months, BPOSY's Forward P/E has been as high as 7.58 and as low as 5.35, with a median of 6.57.

Value investors also use the P/S ratio. The P/S ratio is 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. BPOSY has a P/S ratio of 0.2. This compares to its industry's average P/S of 0.54.

Investors could also keep in mind H&R Block (HRB - Free Report) , an Consumer Services - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

H&R Block is trading at a forward earnings multiple of 10.44 at the moment, with a PEG ratio of 0.84. This compares to its industry's average P/E of 10.59 and average PEG ratio of 0.75.

Over the last 12 months, HRB's P/E has been as high as 12.80, as low as 7.25, with a median of 8.72, and its PEG ratio has been as high as 1.02, as low as 0.58, with a median of 0.70.

Furthermore, H&R Block holds a P/B ratio of 30.45 and its industry's price-to-book ratio is 5.35. HRB's P/B has been as high as 288.19, as low as -12.56, with a median of 34.63 over the past 12 months.

These are only a few of the key metrics included in bpost and H&R Block strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BPOSY and HRB look like an impressive value stock at the moment.


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