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Here's Why Investors Should Buy H&R Block (HRB) Stock Now
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H&R Block, Inc. (HRB - Free Report) performed well in the year-to-date period and has potential to sustain the momentum. If you have not taken advantage of its share price appreciation yet, it is time for you to add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at HRB’s price trend reveals that its shares have gained 9.2% in the year-to-date period against a 2.8% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: H&R Block currently carries a Zacks Rank #2 (Buy) and has a 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 seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: Two estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 1.5% in the past 60 days.
Positive Earnings Surprise History: H&R Block has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters (one miss), delivering an earnings surprise of 3.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2024 earnings is pegged at $4.16 per share, which reflects year-over-year growth of 8.9%. Moreover, earnings are expected to register 12.5% growth in 2025. The company’s long-term expected earnings per share growth rate is at 12.5%.
Driving Factors: H&R Block has a five-year strategy in place, known as Block Horizons 2025. The strategy is focused on using human expertise and technological infrastructure to drive innovation. The strategy aims at building strong relationships with small businesses through Wave and Block Advisors, develop 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.
Block Horizons 2025 is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block’s current ratio (a measure of liquidity) at the end of fourth-quarter 2023 was pegged at 1.27, higher than the current ratio of 1.17 reported at the end of the previous quarter. Increasing current ratio bodes well for H&R Block as it implies that the risk of default is less.
Other Stocks to Consider
Investors interested in the Zacks Business Services sector can consider some other top-ranked stocks mentioned below.
Earnings and revenues for 2023 are expected to grow 39% and 14.8% from the year-ago figure. APTV had an impressive earnings surprise of 13.35% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. APTV carries a VGM Score of A.
Clean Harbors (CLH - Free Report) currently has a Zacks Rank of 2. Earnings for 2023 are suggested to be in line with the year-ago quarter while revenues are anticipated to go up 5.3% year over year.
CLH had an impressive earnings surprise of 13% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. CLH carries a VGM Score of B.
Verisk Analytics (VRSK - Free Report) presently carries a Zacks Rank of 2. Earnings for 2023 are projected to grow 14%. Revenues for 2023 are forecast to fall 8.3% from the year-ago figure.
VRSK had an impressive earnings surprise of 9.85% in the past four quarters, having beaten the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance.
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Here's Why Investors Should Buy H&R Block (HRB) Stock Now
H&R Block, Inc. (HRB - Free Report) performed well in the year-to-date period and has potential to sustain the momentum. If you have not taken advantage of its share price appreciation yet, it is time for you to add the stock to your portfolio.
Let’s take a look at the factors that make the stock an attractive pick.
An Outperformer: A glimpse at HRB’s price trend reveals that its shares have gained 9.2% in the year-to-date period against a 2.8% fall of the industry it belongs to.
Image Source: Zacks Investment Research
Solid Rank & VGM Score: H&R Block currently carries a Zacks Rank #2 (Buy) and has a 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 seems to be an appropriate investment proposition at the moment.
Northward Estimate Revisions: Two estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for 2024 earnings has moved up 1.5% in the past 60 days.
Positive Earnings Surprise History: H&R Block has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters (one miss), delivering an earnings surprise of 3.5%, on average.
Strong Growth Prospects: The Zacks Consensus Estimate for 2024 earnings is pegged at $4.16 per share, which reflects year-over-year growth of 8.9%. Moreover, earnings are expected to register 12.5% growth in 2025. The company’s long-term expected earnings per share growth rate is at 12.5%.
Driving Factors: H&R Block has a five-year strategy in place, known as Block Horizons 2025. The strategy is focused on using human expertise and technological infrastructure to drive innovation. The strategy aims at building strong relationships with small businesses through Wave and Block Advisors, develop 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.
Block Horizons 2025 is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments, and maintain a strong balance sheet and liquidity position.
H&R Block’s current ratio (a measure of liquidity) at the end of fourth-quarter 2023 was pegged at 1.27, higher than the current ratio of 1.17 reported at the end of the previous quarter. Increasing current ratio bodes well for H&R Block as it implies that the risk of default is less.
Other Stocks to Consider
Investors interested in the Zacks Business Services sector can consider some other top-ranked stocks mentioned below.
Aptiv (APTV - Free Report) carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings and revenues for 2023 are expected to grow 39% and 14.8% from the year-ago figure. APTV had an impressive earnings surprise of 13.35% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. APTV carries a VGM Score of A.
Clean Harbors (CLH - Free Report) currently has a Zacks Rank of 2. Earnings for 2023 are suggested to be in line with the year-ago quarter while revenues are anticipated to go up 5.3% year over year.
CLH had an impressive earnings surprise of 13% in the past four quarters, having beaten the Zacks Consensus Estimate in all four trailing quarters. CLH carries a VGM Score of B.
Verisk Analytics (VRSK - Free Report) presently carries a Zacks Rank of 2. Earnings for 2023 are projected to grow 14%. Revenues for 2023 are forecast to fall 8.3% from the year-ago figure.
VRSK had an impressive earnings surprise of 9.85% in the past four quarters, having beaten the Zacks Consensus Estimate in three of the four trailing quarters and matching on one instance.