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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.

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.

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 a P/E ratio of 11.33, which compares to its industry's average of 12.91. Over the past 52 weeks, HRB's Forward P/E has been as high as 11.52 and as low as 7.01, with a median of 10.08.

Finally, we should also recognize that HRB has a P/CF ratio of 9.78. 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. This stock's P/CF looks attractive against its industry's average P/CF of 11.77. HRB's P/CF has been as high as 10.44 and as low as 6.97, with a median of 9.01, all within the past year.

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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