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Are Investors Undervaluing H&R Block (HRB) Right Now?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is H&R Block (HRB - Free Report) . HRB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.92, while its industry has an average P/E of 12.07. HRB's Forward P/E has been as high as 13.96 and as low as 9.44, with a median of 10.65, all within the past year.
We also note that HRB holds a PEG ratio of 0.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HRB's PEG compares to its industry's average PEG of 1.06. HRB's PEG has been as high as 1.12 and as low as 0.76, with a median of 0.85, all within the past year.
Finally, our model also underscores that HRB has a P/CF ratio of 12.21. 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 15.07. Over the past year, HRB's P/CF has been as high as 13.17 and as low as 8.59, with a median of 9.71.
These are only a few of the key metrics included in H&R Block's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HRB looks like an impressive value stock at the moment.
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Are Investors Undervaluing H&R Block (HRB) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is H&R Block (HRB - Free Report) . HRB is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 11.92, while its industry has an average P/E of 12.07. HRB's Forward P/E has been as high as 13.96 and as low as 9.44, with a median of 10.65, all within the past year.
We also note that HRB holds a PEG ratio of 0.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. HRB's PEG compares to its industry's average PEG of 1.06. HRB's PEG has been as high as 1.12 and as low as 0.76, with a median of 0.85, all within the past year.
Finally, our model also underscores that HRB has a P/CF ratio of 12.21. 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 15.07. Over the past year, HRB's P/CF has been as high as 13.17 and as low as 8.59, with a median of 9.71.
These are only a few of the key metrics included in H&R Block's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, HRB looks like an impressive value stock at the moment.