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

Zacks

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is H&R Block (HRB). HRB is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.53. This compares to its industry's average Forward P/E of 12.16. Over the past 52 weeks, HRB's Forward P/E has been as high as 13.96 and as low as 10.06, with a median of 10.85.

We also note that HRB holds a PEG ratio of 0.92. 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 0.96. Over the last 12 months, HRB's PEG has been as high as 1.12 and as low as 0.81, with a median of 0.87.

Finally, we should also recognize that HRB has a P/CF ratio of 11.81. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 17.95. Over the past 52 weeks, HRB's P/CF has been as high as 13.17 and as low as 8.59, with a median of 9.86.

These figures are just a handful of the metrics value investors tend to look at, but they help show that H&R Block is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, HRB feels like a great value stock at the moment.

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Dj H&R Block Inc. Stock Underperforms Wednesday When Compared To Competitors

Reuters

H&R Block

-0.37%

Risk Warnings and Disclaimers

Add to Favorites

Dj H&R Block Inc. Stock Underperforms Tuesday When Compared To Competitors

Reuters

H&R Block

-0.37%

Risk Warnings and Disclaimers

Add to Favorites

Sector Update: Financial Stocks Softer Late Afternoon

MT Newswires

H&R Block

-0.37%

Hudson Pacific Properties, Inc.

-5.70%

Dime Community Bancshares Inc.

+0.27%

Dime Community Bancshares, Inc. Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series A

-2.17%

ACNB Corp.

-0.23%

Financial stocks fell in late Tuesday afternoon trading, with the NYSE Financial Index down 0.5% and the Financial Select Sector SPDR Fund (XLF) off 0.2%.

The Philadelphia Housing Index dropped 2.2%, and the Real Estate Select Sector SPDR Fund (XLRE) declined 1%.

Bitcoin (BTC/USD) rose 0.8% to $89,256, and the yield for 10-year US Treasuries jumped 12 basis points to 4.43%.

In economic news, US consumers' inflation expectations fell "slightly" at the short-, medium-, and long-term horizons in October, according to a survey by the New York Fed.

Official data are expected to show Wednesday that US consumer inflation rose 0.2% sequentially and 2.6% annually last month, according to a Bloomberg-compiled consensus.

The National Federation of Independent Business' monthly Small Business Optimism Index rose to 93.7 in October from 91.5 in September and 90.7 a year earlier.

In corporate news, H&R Block shares fell 2.2%. The company has reached a proposed settlement with the Federal Trade Commission, agreeing to pay $7 million for consumer redress and to make key adjustments to its tax filing services by the 2025 tax season, the FTC said.

Hudson Pacific Properties shares tumbled 7.9% after Jefferies downgraded the stock to hold from buy.

Dime Community Bancshares shares dropped 2.2% after the company priced its offering of 3.9 million shares at $32 apiece to raise $125 million.

ACNB received all regulatory approvals required for the all-stock acquisition of OTC-listed Traditions Bancorp. ACNB shares were falling 2.6%.

Risk Warnings and Disclaimers

Add to Favorites

Sector Update: Financial

MT Newswires

H&R Block

-0.37%

Financial stocks fell in late Tuesday afternoon trading with the NYSE Financial Index down 0.5% and the Financial Select Sector SPDR Fund (XLF) off 0.2%.

The Philadelphia Housing Index dropped 2.2%, and the Real Estate Select Sector SPDR Fund (XLRE) declined 1%.

Bitcoin (BTC/USD) rose 0.8% to $89,256, and the yield for 10-year US Treasuries jumped 12 basis points to 4.43%.

In economic news, US consumers' inflation expectations dropped "slightly" at the short-, medium-, and long-term horizons in October, according to a survey by the New York Fed.

Official data are expected to show Wednesday that US consumer inflation rose 0.2% sequentially and 2.6% annually last month, according to a Bloomberg-compiled consensus.

The National Federation of Independent Business's monthly Small Business Optimism Index rose to 93.7 in October from 91.5 in September and 90.7 a year earlier.

Risk Warnings and Disclaimers

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H&R Block Settles Us Ftc Charges Over 'Free' Filing Claims, Customer Downgrades

Reuters

H&R Block

-0.37%

Risk Warnings and Disclaimers

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Press Release: H&R Reit Reports Third Quarter -5

Reuters

H&R Block

-0.37%

Risk Warnings and Disclaimers

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

Dj H&R Block Inc. Stock Underperforms Wednesday When Compared To Competitors

Dj H&R Block Inc. Stock Underperforms Tuesday When Compared To Competitors

Sector Update: Financial Stocks Softer Late Afternoon

Sector Update: Financial

H&R Block Settles Us Ftc Charges Over 'Free' Filing Claims, Customer Downgrades

Press Release: H&R Reit Reports Third Quarter -5

Risk Disclosure