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Reasons Why You Should Invest in H&R Block (HRB) Stock Now

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H&R Block, Inc. (HRB - Free Report) is a consumer services company that has performed exceptionally well in the past year and has the potential to sustain this momentum in the near term. Consequently, if you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes HRB an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the past year. Shares of H&R Block have gained 45.4% against the 10.7% decline of the industry it belongs to.

Solid Rank: H&R Block carries a Zacks Rank #2 (Buy). Our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, offer attractive investment opportunities. You can see the complete list of today’s Zacks #1 Rank stocks here.

Northward Estimate Revisions: One estimate for fiscal 2023 moved north in the past 60 days versus no southward revision, reflecting the analysts’ confidence in the company. The Zacks Consensus Estimate for HRB’s fiscal 2023 earnings has moved up 1.6% in the past 30 days.

Strong Growth Prospects: The company has an expected long-term (three to five years) earnings per share growth rate of 12.5%. Its earnings for fiscal 2023 and 2024 are expected to improve 10% and 10.5%, respectively, year over year.

Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 10.7%.

Growth Factors: H&R Block has a five-year strategy called Block Horizons in place. The strategy is focused on using human expertise and technological infrastructure to drive innovation. It aims to build strong relationships with small businesses through Wave and Block Advisors, develop Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and make taxation faster and more personalized by integrating human expertise with digital tools.

Block Horizons is expected to help the company to earn sustainable revenues and operating profit growth, improve return on investments, and maintain a strong balance sheet and liquidity position.

We believe that the main drivers of the company’s post-pandemic performance are the digital enablement of its business, client addition and retention in both Assisted and DIY, greater usage of AI, machine learning for product improvement, and expansion in small businesses.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Trane Technologies (TT - Free Report)  and The Interpublic Group of Companies, Inc. (IPG - Free Report) .

Trane Technologies sports a Zacks Rank #1 at present. TT has a long-term earnings growth expectation of 9.8%.

Trane delivered a trailing four-quarter earnings surprise of 8.2% on average.

Interpublic currently sports a Zacks Rank #1. IPG has a long-term earnings growth expectation of 4.6%.

IPG delivered a trailing four-quarter earnings surprise of 8.2% on average.


See More Zacks Research for These Tickers


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Interpublic Group of Companies, Inc. (The) (IPG) - free report >>

H&R Block, Inc. (HRB) - free report >>

Trane Technologies plc (TT) - free report >>

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