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Are Investors Undervaluing H&R Block (HRB) Right Now?
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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, 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.
H&R Block (HRB - Free Report) is a stock many investors are watching right now. HRB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.38, which compares to its industry's average of 11.33. Over the past year, HRB's Forward P/E has been as high as 10.74 and as low as 7.01, with a median of 9.16.
Investors should also note that HRB holds a PEG ratio of 0.83. 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 1.20. Over the last 12 months, HRB's PEG has been as high as 0.86 and as low as 0.56, with a median of 0.73.
Finally, investors will want to recognize that HRB has a P/CF ratio of 9.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.18. Over the past year, HRB's P/CF has been as high as 10.09 and as low as 6.99, with a median of 8.82.
Another great Consumer Services - Miscellaneous stock you could consider is Pactiv Evergreen (PTVE - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Pactiv Evergreen also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 5.33. Over the past year, its P/B ratio has been as high as 1.69, as low as 0.87, with a median of 1.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that H&R Block and Pactiv Evergreen are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRB and PTVE feels like a great value stock at the moment.
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Are Investors Undervaluing H&R Block (HRB) Right Now?
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, 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.
H&R Block (HRB - Free Report) is a stock many investors are watching right now. HRB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 10.38, which compares to its industry's average of 11.33. Over the past year, HRB's Forward P/E has been as high as 10.74 and as low as 7.01, with a median of 9.16.
Investors should also note that HRB holds a PEG ratio of 0.83. 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 1.20. Over the last 12 months, HRB's PEG has been as high as 0.86 and as low as 0.56, with a median of 0.73.
Finally, investors will want to recognize that HRB has a P/CF ratio of 9.79. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.18. Over the past year, HRB's P/CF has been as high as 10.09 and as low as 6.99, with a median of 8.82.
Another great Consumer Services - Miscellaneous stock you could consider is Pactiv Evergreen (PTVE - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.
Pactiv Evergreen also has a P/B ratio of 1.69 compared to its industry's price-to-book ratio of 5.33. Over the past year, its P/B ratio has been as high as 1.69, as low as 0.87, with a median of 1.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that H&R Block and Pactiv Evergreen are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRB and PTVE feels like a great value stock at the moment.