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Here's Why H&R Block (HRB) is a Strong Value Stock

Zacks Equity Research
·2-min read

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

While you may have an investing style you rely on, finding great stocks is made easier with the Zacks Style Scores. These are complementary indicators that rate stocks based on value, growth, and/or momentum characteristics.

Why Investors Should Pay Attention to This Value Stock

Finding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to highlight the most attractive and discounted stocks.

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H&R Block (HRB)

H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions and other products and services associated with income tax return preparation in the United States, Canada and Australia.

HRB sits at a Zacks Rank #3 (Hold), holds a Value Style Score of A, and has a VGM Score of A. Compared to the Consumer Services - Miscellaneous industry's P/E of 21.5X, shares of H&R Block are trading at a forward P/E of 11.7X. HRB also has a PEG Ratio of 0.9, a Price/Cash Flow ratio of 10.4X, and a Price/Sales ratio of 2X.

A company's earnings performance is important for value investors as well. For fiscal 2024, two analysts revised their earnings estimate higher in the last 60 days for HRB, while the Zacks Consensus Estimate has increased $0.04 to $4.29 per share. HRB also holds an average earnings surprise of 10.3%.

With strong valuation and earnings metrics, a good Zacks Rank, and top-tier Value and VGM Style Scores, investors should strongly think about adding HRB to their portfolios.

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H&R Block, Inc. (HRB) : Free Stock Analysis Report

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Zacks Investment Research