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Is H&R Block (HRB) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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), as well as an A grade for Value. The stock is trading with P/E ratio of 10.56 right now. For comparison, its industry sports an average P/E of 11.89. Over the past 52 weeks, HRB's Forward P/E has been as high as 11.05 and as low as 7.01, with a median of 9.28.

Investors will also notice that HRB has a PEG ratio of 0.84. 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 1.31. Within the past year, HRB's PEG has been as high as 0.88 and as low as 0.56, with a median of 0.74.

Finally, investors will want to recognize that HRB has a P/CF ratio of 10.13. 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 13.48. Over the past 52 weeks, HRB's P/CF has been as high as 10.49 and as low as 6.99, with a median of 8.87.

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.

Pactiv Evergreen also has a P/B ratio of 1.97 compared to its industry's price-to-book ratio of 5.70. Over the past year, its P/B ratio has been as high as 2.05, as low as 0.87, with a median of 1.14.

Value investors will likely look at more than just these metrics, but the above data helps show that H&R Block and Pactiv Evergreen are likely undervalued currently. And when considering the strength of its earnings outlook, HRB and PTVE sticks out as one of the market's strongest value stocks.


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H&R Block, Inc. (HRB) - free report >>

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