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Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
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H&R Block (HRB) Rises 37% in a Year: Here's What to Know
H&R Block, Inc. (HRB - Free Report) has had an impressive run over the past year. The stock has appreciated 37%, significantly outperforming the 14% rally of the industry it belongs to and the 33% growth of the Zacks S&P 500 composite.
What’s Behind the Rally
Commitment to shareholder returns makes H&R Block a reliable way for investors to compound wealth over the long term. The company paid $177.9 million, $186.5 million and $195.1 million in dividends in fiscal 2023, 2022 and 2021, respectively. It repurchased shares worth $550.2 million, $563.2 million and $191.3 million, respectively, in fiscal 2023, 2022 and 2021.
H&R Block, Inc. Price
H&R Block, Inc. price | H&R Block, Inc. Quote
We believe that the main drivers of the company’s post-pandemic performance will be digital enablement of its business, client addition and retention in both Assisted and DIY, greater usage of AI, and machine learning for product improvement and expansion in small businesses.
H&R Block has a five-year strategy called Block Horizons in place, which is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments and maintain strong balance sheet and liquidity positions.
H&R Block’s current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2024 was pegged at 1.21, higher than the prior quarter’s 0.80 and the year-ago quarter’s 1.2. A current ratio of more than one often indicates that the company will be able to easily pay off its short-term obligations.
Zacks Rank and Other Stocks to Consider
Xerox currently carries a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are Barrett Business Services (BBSI - Free Report) and Jamf (JAMF - Free Report) .
Barrett Business Services carries a Zacks Rank of 2 (Buy) at present. BBSI has a long-term earnings growth expectation of 14%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BBSI delivered a trailing four-quarter earnings surprise of 77.7%, on average.
Jamf carries a Zacks Rank of 2 at present. JAMF has a long-term earnings growth expectation of 22.5%.
JAMF delivered a trailing four-quarter earnings surprise of 49.4%, on average.