H&R Block, Inc. (HRB - Free Report) has had an impressive run over the past year. The stock has appreciated 20.9%, significantly outperforming the 7.7% rally of the industry it belongs to.
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.
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.
The company is not restricted to its core business of tax preparation services. It is diversifying by adding new offerings to its tally like Refund Transfers, H&R Block Emerald Prepaid Mastercard, Peace of Mind Extended Service Plan, Tax Identity Shield, Refund Advance Loans and Small Business Financial Solutions.
Zacks Rank and Other Stocks to Consider
H&R Block currently carries a Zacks Rank #2 (Buy).
Investors can consider the following other top-ranked stocks:
Rollins (ROL - Free Report) currently carries a Zacks Rank #2. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents, indicating year-over-year growth of 17.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
FTI Consulting (FCN - Free Report) also carries a Zacks Rank #2 at present. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.
FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
H&R Block, Inc. (HRB - Free Report) has had an impressive run over the past year. The stock has appreciated 20.9%, significantly outperforming the 7.7% rally of the industry it belongs to.
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.
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.
The company is not restricted to its core business of tax preparation services. It is diversifying by adding new offerings to its tally like Refund Transfers, H&R Block Emerald Prepaid Mastercard, Peace of Mind Extended Service Plan, Tax Identity Shield, Refund Advance Loans and Small Business Financial Solutions.
Zacks Rank and Other Stocks to Consider
H&R Block currently carries a Zacks Rank #2 (Buy).
Investors can consider the following other top-ranked stocks:
Rollins (ROL - Free Report) currently carries a Zacks Rank #2. For the fourth quarter of 2023, the Zacks Consensus Estimate for earnings is pegged at 20 cents, indicating year-over-year growth of 17.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ROL has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and matching once, the average surprise being 7.2%.
FTI Consulting (FCN - Free Report) also carries a Zacks Rank #2 at present. The consensus mark for fourth-quarter 2023 earnings is pegged at $1.57 per share, indicating 3.3% year-over-year growth.
FCN has an impressive earnings surprise history, beating the consensus mark in three of the four trailing quarters and missing once, the average surprise being 8.5%.
Zacks Naming Top 10 Stocks for 2024
Want to be tipped off early to our 10 top picks for the entirety of 2024?
History suggests their performance could be sensational.
From 2012 (when our Director of Research, Sheraz Mian assumed responsibility for the portfolio) through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2024. Don’t miss your chance to get in on these stocks when they’re released on January 2.
Be First to New Top 10 Stocks >>
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