3 Undervalued Personal Services Stocks for Wednesday, April 24 (2024)

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Personal Services industry for Wednesday, April 24, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Personal Services industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

E-Home Household Service Holdings Ltd is a China-based company principally engaged in the operation of household services through on-line APP platform or call center. The Company operates its businesses through three segments. Installation and Maintenance Services segment mainly provides technical home installation and repair, maintenance and other after sale services. Housekeeping Services segment provides housecleaning, nanny service, maternity matron and personnel staffing services. Senior Care Services segment provides blood pressure monitoring, heart rate analytics, daily steps count, location and track record services through the Company’s E-watch, call for help through WeChat or phone, and other care services rendered to senior customers through an E-watch, which is provided to customers when they pay the annual fees.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

E-Home Household Service Holdings Ltd has a Value Score of 100, which is considered to be undervalued.

When you look at E-Home Household Service Holdings Ltd’s price-to-sales ratio at 0.02 compared to the industry median at 1.01, this company has a lower price relative to revenue compared to its peers. This could make E-Home Household Service Holdings Ltd’s stock more attractive for value investors.

Now, let’s assess E-Home Household Service Holdings Ltd’s EV/EBITDA ratio, also known as enterprise multiple. At 2.2, when compared to the industry median of 11.0, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. E-Home Household Service Holdings Ltd’s price-to-book ratio is lower than its industry median ratio of 3.94. This could make E-Home Household Service Holdings Ltd more attractive to investors looking for a new addition to their portfolio.

H&R; Block, Inc. is engaged in providing tax preparation services, financial products, and small business solutions. The Company provides assisted and do-it-yourself (DIY) tax return preparation solutions through multiple channels, including in-person, online and mobile applications, virtual, and desktop software and distributes H&R; Block-branded services and products. It also offers small business financial solutions through its Company-owned and franchise offices and online through Wave. The Company provides additional services, including Refund Transfers (RT), Peace of Mind Extended Service Plan (POM), H&R; Block Emerald Prepaid Mastercard (Emerald Card), H&R; Block Emerald Advance Lines of Credit (EA), Tax Identity Shield (TIS), Refund Advances (RA), and small business financial solutions. The RTs enable clients to receive their tax refunds by their chosen method of disbursem*nt and include a feature enabling clients to deduct tax preparation and related fees from their tax refunds.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

H & R Block Inc has a Value Score of 63, which is considered to be undervalued.

H & R Block Inc’s price-earnings ratio is 13.0 compared to the industry median at 14.7. This means that it has a lower price relative to its earnings compared to its peers. This makes H & R Block Inc more attractive for value investors.

You can read more about H & R Block Inc’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Regis Corporation is a hair salon company, which franchises, owns and operates beauty salons. The Company’s segments include Franchise salons and Company-owned salons. The Franchise salons segment is comprised of 4,795 franchise salons located mainly in strip center locations and Walmart. Franchise salons offer hair care and beauty services and retail products. This segment operates primarily in the United States, Puerto Rico and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters and Magicuts concepts. The Company-owned salons segment is comprised of 68 Company-owned salons located mainly in strip center locations and Walmart. Company-owned salons offer hair care and beauty services and retail products. SmartStyle, Supercuts, Cost Cutters and other regional trade names operating in the United States and Canada are generally within the Company-owned salons segment.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Regis Corp has a Value Score of 73, which is considered to be undervalued.

You can read more about Regis Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Personal Services stocks as well as other industrys.

Now that you have a bit more background about each of the 3 undervalued stocks in the Personal Services industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

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