Why this value stock could be a great addition to your portfolio

For new and old investors, making the most of the stock market opportunities and maintaining confidence in their investments are common goals.

Even if you have an investing style you rely on, finding great stocks is made easier with Zacks Style Scores, complementary indicators that evaluate stocks based on value, growth and/or momentum characteristics.

Why investors should pay attention to this value stock

Value investors love finding good stocks at good prices, especially before the broader market recognizes a stock’s true value. Using metrics such as P/E, PEG, price-to-sales and price-to-cash flow, the Value Style Score identifies the most attractive and cheapest valued stocks.

H&R Block (HRB)

H&R Block Inc. is a leading provider of tax preparation services. The company offers income tax preparation assistance, do-it-yourself tax solutions, and other products and services related to income tax preparation in the United States, Canada, and Australia.

HRB has a Zacks Rank of 2 (Buy), a Value Style Score of A and a VGM Score of A. Compared to the Consumer Services – Other industry’s P/E ratio of 20.9, H&R Block shares are trading at a Forward P/E ratio of 11.5. HRB also has a PEG ratio of 0.9, a price-to-cash-flow ratio of 11.4 and a price-to-sales ratio of 2.1.

Value investors don’t just look at a company’s valuation metrics; positive earnings also play a crucial role. Two analysts have upgraded their earnings estimates for fiscal year 2024 in the past 60 days. The Zacks Consensus Estimate has increased by $0.04 to $4.29 per share. HRB has an average earnings surprise of 10.3%.

Given strong valuation and earnings metrics, a good Zacks Rank, and top-notch Value and VGM Style Scores, investors should seriously consider adding HRB to their portfolio.

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

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