Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of H&R Block (NYSE: HRB) took it on the chin today, just one day after the tax prep powerhouse reported a steep decline in reported earnings for the fiscal first quarter of 2012.

So what: Revenues came in at $268 million, about $7 million short of estimates. The really bad news, though, was that H&R lost $0.57 per share -- versus the $0.40 loss Wall Street had told us to expect.

Now what: Scary? Sure, but most of this accounting disappointment resulted from a non-cash charge. It also leaves H&R with $362 million in trailing earnings (for about an 11 P/E) and $401 million in actual free cash flow (roughly a 10 P/FCF ratio). For a company expected to grow at 10% per year over the next five years, and  that pays its shareholders a 4% annual dividend to boot, I have to say -- that looks awfully cheap.

Will investors ultimately agree that H&R Block is a bargain? Add it to your Watchlist and find out.

Fool contributor Rich Smith does not own (or short) shares of any company named above. The Motley Fool has a disclosure policy. Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.