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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 stock that has performed exceptionally well in the past year and has the potential to sustain momentum in the near term. Consequently, if you haven’t taken advantage of the share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes HRB International an Attractive Pick?

An Outperformer: A glimpse of the company’s price trend reveals that the stock has had an impressive run on the bourse in the past year. Shares of H&R Block have returned 47.9% against an 18.3% 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 B. 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.

Northward Estimate Revisions: The direction of estimate revisions serves as an important pointer when it comes to the price of a stock. Three estimates for fiscal 2022 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. Over the same period, the Zacks Consensus Estimate for fiscal 2021 earnings has moved up 1.8%.

Growth Factors: We believe the main drivers of the company’s performance, post the pandemic, 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 business.

The company’s continued focus on building strong relationships with small businesses through Wave and Block Advisors, developing Emerald Card as a consumer-centric, mobile-first solution for the underbanked, and making taxation faster and more personalized through integrating human expertise with digital tools, should help it deliver sustainable revenues and operating profit growth. It would also improve return on investments and enable H&R Block to maintain a strong balance sheet and liquidity position.

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are Avis Budget (CAR - Free Report) , Cross Country Healthcare, Inc. (CCRN - Free Report) and CRA International, Inc. (CRAI - Free Report) .

Avis Budgethas an expected earnings growth rate of around 453.5% for the current year. CAR has a trailing four-quarter earnings surprise of 76.9%, on average.

Avis Budget’s shares have surged 499.7% in the past year. CAR has a long-term earnings growth of 18.8%. CAR sports a Zacks #1 Rank.

Cross Country Healthcare has an expected earnings growth rate of around 500% for the current year. CCRN has a trailing four-quarter earnings surprise of 75%, on average.

Cross Country Healthcare’s shares have surged 499.7% in the past year. CCRN has a long-term earnings growth of 21.5%. CCRN flaunts a Zacks #1 Rank.

CRA International has an expected earnings growth rate of around 61.2% for the current year. CRAI has a trailing four-quarter earnings surprise of 51%, on average.

CRA International’s shares have surged 75.4% in the past year. CRAI has a long-term earnings growth of 15.5%. The stock carries a Zacks #2 (Buy) Rank.

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