Advertisement
Singapore markets close in 3 hours 27 minutes

  • Straits Times Index

    3,282.24
    -10.89 (-0.33%)
     

  • Nikkei

    37,631.21
    -828.87 (-2.16%)
     

  • Hang Seng

    17,256.52
    +55.25 (+0.32%)
     

  • FTSE 100

    8,040.38
    -4.43 (-0.06%)
     

  • Bitcoin USD

    64,113.71
    -2,650.36 (-3.97%)
     

  • CMC Crypto 200

    1,387.76
    -36.34 (-2.55%)
     

  • S&P 500

    5,071.63
    +1.08 (+0.02%)
     

  • Dow

    38,460.92
    -42.77 (-0.11%)
     

  • Nasdaq

    15,712.75
    +16.11 (+0.10%)
     

  • Gold

    2,328.90
    -9.50 (-0.41%)
     

  • Crude Oil

    82.93
    +0.12 (+0.14%)
     

  • 10-Yr Bond

    4.6520
    +0.0540 (+1.17%)
     

  • FTSE Bursa Malaysia

    1,570.29
    -1.19 (-0.08%)
     

  • Jakarta Composite Index

    7,157.23
    -17.30 (-0.24%)
     

  • PSE Index

    6,576.76
    +4.01 (+0.06%)
     

Here's Why H&R Block (HRB) Stock is a Great Pick Right Now

Zacks Equity Research
·4-min read

H&R Block, Inc. HRB 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, you should add the stock to your portfolio right now.

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 31.2% against the 13.6% decline of the industry it belongs to.

H&R Block, Inc. Price

 

H&R Block, Inc. Price
H&R Block, Inc. Price

H&R Block, Inc. price | H&R Block, Inc. Quote

ADVERTISEMENT

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: Two estimates for fiscal 2023 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for HRB’s fiscal 2023 earnings has moved up 1.6% in the past 60 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 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 use of AI, machine learning for product improvement, and expansion in small businesses.

Other Stocks to Consider

Some other top-ranked stocks are Omnicom Group OMC, ICF International ICFI and Gartner, Inc. IT.

For first-quarter 2023, OMC’s earnings are expected to increase slightly from the year-ago reported figure to $1.4. The company’s earnings are expected to grow 3.5% on a year-over-year basis in 2023.

The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised downward by 1.4% in the past 60 days. The consensus estimate for the year stands at $7.17 per share. This has been revised 13.5% upward in the past 60 days. OMC currently sports a Zacks Rank #1.

For first-quarter 2023, ICFI’s earnings are expected to increase 7.6% from the year-ago reported figure to $1.41. The company’s earnings are expected to grow 9.2% on a year-over-year basis in 2023.

The Zacks Consensus Estimate for ICF International’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward by 6% in the past 60 days. The consensus estimate for the year stands at $6.3 per share. This has been revised 7.3% upward in the past 60 days. The company currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for IT’s first-quarter 2023 earnings is pegged at $2.04, which has been revised upward 3% in the past 60 days. The consensus estimate for the year stands at $9.49 per, share which has been revised slightly upward in the past 60 days. Gartner currently carries a Zacks Rank #2.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Omnicom Group Inc. (OMC) : Free Stock Analysis Report

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

Gartner, Inc. (IT) : Free Stock Analysis Report

ICF International, Inc. (ICFI) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research