Should Value Investors Buy H&R Block (HRB) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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). 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 9.35, which compares to its industry's average of 11.91. Over the past 52 weeks, HRB's Forward P/E has been as high as 12.80 and as low as 7.01, with a median of 9.21.
Finally, our model also underscores that HRB has a P/CF ratio of 8.88. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.88. Over the past 52 weeks, HRB's P/CF has been as high as 11.37 and as low as 6.97, with a median of 8.88.
Investors could also keep in mind Pactiv Evergreen (PTVE), an Consumer Services - Miscellaneous stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Pactiv Evergreen sports a P/B ratio of 1.13 as well; this compares to its industry's price-to-book ratio of 4.67. In the past 52 weeks, PTVE's P/B has been as high as 1.72, as low as 0.87, with a median of 1.19.
These are just a handful of the figures considered in H&R Block and Pactiv Evergreen's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that HRB and PTVE is an impressive value stock right now.
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H&R Block, Inc. (HRB) : Free Stock Analysis Report
Pactiv Evergreen Inc. (PTVE) : Free Stock Analysis Report
