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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 H&R Block (HRB - Free Report) . HRB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.85, which compares to its industry's average of 12.77. Over the past year, HRB's Forward P/E has been as high as 13.04 and as low as 7.98, with a median of 10.40.
We also note that HRB holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRB's PEG compares to its industry's average PEG of 1.06. Within the past year, HRB's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.83.
Finally, investors should note that HRB has a P/CF ratio of 10.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.58. Within the past 12 months, HRB's P/CF has been as high as 10.66 and as low as 7.45, with a median of 9.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that H&R Block is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRB feels like a great value stock at the moment.
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Should Value Investors Buy H&R Block (HRB) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 H&R Block (HRB - Free Report) . HRB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 11.85, which compares to its industry's average of 12.77. Over the past year, HRB's Forward P/E has been as high as 13.04 and as low as 7.98, with a median of 10.40.
We also note that HRB holds a PEG ratio of 0.95. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. HRB's PEG compares to its industry's average PEG of 1.06. Within the past year, HRB's PEG has been as high as 1.04 and as low as 0.64, with a median of 0.83.
Finally, investors should note that HRB has a P/CF ratio of 10.51. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 13.58. Within the past 12 months, HRB's P/CF has been as high as 10.66 and as low as 7.45, with a median of 9.35.
These figures are just a handful of the metrics value investors tend to look at, but they help show that H&R Block is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRB feels like a great value stock at the moment.