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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 deliver sustainable revenues and operating profit growth, improve return on investments, and maintain strong balance sheet and liquidity positions.
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 consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid $177.9 million, $186.5 million and $195.1 million as 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. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. They not only instill investors’ confidence but also positively impact earnings per share.
Zacks Rank and Stocks to Consider
H&R Block currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider the following better-ranked stocks:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimates for fiscal 2024 revenues and earnings suggest growth of 7.2% and 8.8%, respectively.
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H&R Block (HRB) Stock Rises 30% in Three Months: Here's How
H&R Block, Inc. (HRB - Free Report) has had an impressive run over the past three months.
The stock has appreciated 30.2% compared with the 1.1% growth of the industry it belongs to and the 3.3% decline of the Zacks S&P 500 composite.
H&R Block, Inc. Price
H&R Block, Inc. price | H&R Block, Inc. Quote
What’s Behind the Rally
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 deliver sustainable revenues and operating profit growth, improve return on investments, and maintain strong balance sheet and liquidity positions.
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 consistent track record of returning capital to shareholders through dividends and share repurchases. The company paid $177.9 million, $186.5 million and $195.1 million as 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. Such moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business. They not only instill investors’ confidence but also positively impact earnings per share.
Zacks Rank and Stocks to Consider
H&R Block currently carries a Zacks Rank #3 (Hold).
Investors interested in the broader Zacks Business Services sector can consider the following better-ranked stocks:
Verisk Analytics (VRSK - Free Report) beat the Zacks Consensus Estimate in three of the last four quarters and matched on one instance, with an average surprise of 9.9%. The consensus mark for 2023 revenues is pegged at $2.66 billion, suggesting a decrease of 8.2% from the year-ago figure. The consensus estimate for 2023 earnings is pegged at $5.72 per share, indicating a 14% rise from the year-ago figure. VRSK currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Automatic Data (ADP - Free Report) currently has a Zacks Rank of 2. It outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 3.1%. The consensus estimate for fiscal 2023 revenues and earnings implies growth of 6.3% and 11.1%, respectively.
Broadridge (BR - Free Report) currently carries a Zacks Rank of 2. It surpassed the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched on one instance, the average surprise being 0.5%. The consensus estimates for fiscal 2024 revenues and earnings suggest growth of 7.2% and 8.8%, respectively.