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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.48, which compares to its industry's average of 16.16. Over the last 12 months, HRB's Forward P/E has been as high as 14.59 and as low as 8.15, with a median of 12.11.
HRB is also sporting a PEG ratio of 0.85. 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 industry currently sports an average PEG of 1.38. Over the last 12 months, HRB's PEG has been as high as 1.46 and as low as 0.82, with a median of 1.21.
Finally, investors will want to recognize that HRB has a P/CF ratio of 7.35. 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 P/CF compares to its industry's average P/CF of 9.19. HRB's P/CF has been as high as 10.15 and as low as 5.62, with a median of 8.28, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that H&R Block is likely undervalued currently. And when considering the strength of its earnings outlook, HRB sticks out at as one of the market's strongest value stocks.
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.48, which compares to its industry's average of 16.16. Over the last 12 months, HRB's Forward P/E has been as high as 14.59 and as low as 8.15, with a median of 12.11.
HRB is also sporting a PEG ratio of 0.85. 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 industry currently sports an average PEG of 1.38. Over the last 12 months, HRB's PEG has been as high as 1.46 and as low as 0.82, with a median of 1.21.
Finally, investors will want to recognize that HRB has a P/CF ratio of 7.35. 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 P/CF compares to its industry's average P/CF of 9.19. HRB's P/CF has been as high as 10.15 and as low as 5.62, with a median of 8.28, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that H&R Block is likely undervalued currently. And when considering the strength of its earnings outlook, HRB sticks out at as one of the market's strongest value stocks.