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Is H&R Block (HRB) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is H&R Block (HRB - Free Report) . HRB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.88, while its industry has an average P/E of 11.91. HRB's Forward P/E has been as high as 12.80 and as low as 7.25, with a median of 8.71, all within the past year.

Investors will also notice that HRB has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. HRB's PEG compares to its industry's average PEG of 1.02. Within the past year, HRB's PEG has been as high as 1.02 and as low as 0.58, with a median of 0.70.

Finally, investors should note that HRB has a P/CF ratio of 10.57. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. HRB's current P/CF looks attractive when compared to its industry's average P/CF of 11.84. Over the past year, HRB's P/CF has been as high as 11.37 and as low as 3.23, with a median of 4.39.

If you're looking for another solid Consumer Services - Miscellaneous value stock, take a look at Pactiv Evergreen (PTVE - Free Report) . PTVE is a # 1 (Strong Buy) stock with a Value score of A.

Additionally, Pactiv Evergreen has a P/B ratio of 1.47 while its industry's price-to-book ratio sits at 5.79. For PTVE, this valuation metric has been as high as 2.40, as low as 1.22, with a median of 1.54 over the past year.

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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