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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.
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 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 company to watch right now is H&R Block (HRB - Free Report) . HRB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.93. This compares to its industry's average Forward P/E of 11.97. Over the past year, HRB's Forward P/E has been as high as 13.04 and as low as 8.42, with a median of 10.48.
We also note that HRB holds a PEG ratio of 0.95. 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. HRB's PEG compares to its industry's average PEG of 1.05. HRB's PEG has been as high as 1.04 and as low as 0.67, with a median of 0.84, all within the past year.
Finally, investors should note that HRB has a P/CF ratio of 10.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HRB's current P/CF looks attractive when compared to its industry's average P/CF of 13.60. Over the past year, HRB's P/CF has been as high as 10.81 and as low as 7.92, with a median of 9.44.
These are just a handful of the figures considered in H&R Block'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 HRB is an impressive value stock right now.
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Is H&R Block (HRB) Stock Undervalued Right Now?
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.
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 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 company to watch right now is H&R Block (HRB - Free Report) . HRB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.93. This compares to its industry's average Forward P/E of 11.97. Over the past year, HRB's Forward P/E has been as high as 13.04 and as low as 8.42, with a median of 10.48.
We also note that HRB holds a PEG ratio of 0.95. 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. HRB's PEG compares to its industry's average PEG of 1.05. HRB's PEG has been as high as 1.04 and as low as 0.67, with a median of 0.84, all within the past year.
Finally, investors should note that HRB has a P/CF ratio of 10.60. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. HRB's current P/CF looks attractive when compared to its industry's average P/CF of 13.60. Over the past year, HRB's P/CF has been as high as 10.81 and as low as 7.92, with a median of 9.44.
These are just a handful of the figures considered in H&R Block'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 HRB is an impressive value stock right now.