Reasons Why You Should Invest in H&R Block (HRB) Stock Now
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, 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 in the past year. Shares of H&R Block have gained 71.2% against the 14% decline of the industry it belongs to.
Solid Rank: H&R Block has a Zacks Rank #2 (Buy) and a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities. Thus, the company is a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
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 13.9%.
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 8.3% and 9.8%, respectively, year over year.
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.
H&R Block, Inc. Revenue (TTM)
H&R Block, Inc. revenue-ttm | H&R Block, Inc. Quote
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 are Booz Allen Hamilton Holding Corporation BAH and DocuSign, Inc. DOCU.
Booz Allen carries a Zacks Rank #2 at present. BAH has a long-term earnings growth expectation of 8.9%.
Booz Allen delivered a trailing four-quarter earnings surprise of 8.8% on average.
DocuSign is currently a Zacks #1 Ranked stock. DOCU has a long-term earnings growth expectation of 13.7%.
DOCU delivered a trailing four-quarter earnings surprise of 6.6% on average.
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H&R Block, Inc. (HRB) : Free Stock Analysis Report
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