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Here's Why H&R Block Stock Is a Great Pick for Your Portfolio

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Key Takeaways

  • HRB has returned 6.2% YTD, outperforming its industry's 4.8% decline, with a Zacks Rank #2 and VGM Score of A.
  • Fiscal 2025 EPS is projected to grow 18.4% to $5.20, with long-term earnings growth pegged at 12.5%.
  • Programs like "Make It Legit" and Fund Her Future support gig workers and women entrepreneurs with tax tools.

H&R Block, Inc. (HRB - Free Report) is a tax return preparation service provider that has performed decently year to date and has the potential to sustain momentum in the near term.

What Makes HRB an Attractive Pick?

An Outperformer: A glimpse at the company’s price trend reveals that the stock has had a decent run in the year-to-date period. Shares of H&R Block have returned 6.2% year to date, outperforming the 4.8% decline of the industry it belongs to.

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Solid Rank and VGM ScoreHRB has a Zacks Rank #2 (Buy) and a VGM Score of A at present. 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 for investors. Thus, the company appears to be a compelling investment proposition at the moment.

Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an earnings surprise of 1.5%, on average.

Strong Growth Prospects: The Zacks Consensus Estimate for H&R Block’s fiscal 2025 revenues is pegged at $3.7 billion, implying 3.1% year-over-year growth. The consensus estimate for fiscal 2025 earnings is pegged at $5.2, hinting at an 18.4% year-over-year increase. The company has an estimated long-term (three to five years) earnings per share growth rate of 12.5%.

Growth Factors: The “Make It Legit” contest, which empowers gig workers to see themselves as legitimate small business owners, highlights the creativity and determination behind today’s side hustles. Launched by H&R Block, the campaign showcases unique creators like Pickle Pete and Dead Gregs while drawing attention to the lowered 1099-K tax reporting threshold that now affects millions of independent earners. By offering business formation services, custom branding and expert tax support, H&R Block gives gig workers the tools to turn their passion into a thriving business and keep more of what they earn.

The 2025 Fund Her Future program is a smart, well-rounded initiative that goes beyond just writing checks. It delivers real, ongoing support to women entrepreneurs who often face systemic funding challenges.

By pairing financial grants with hands-on services like tax prep and bookkeeping, Block Advisors is giving female founders the infrastructure they need to grow sustainably. The success stories from past winners show that this kind of support can directly lead to business expansion, job creation and broader community impact. It’s an example of how corporate programs can make a meaningful difference when they focus on both capital and capability.

Stocks to Consider

Some better-ranked stocks from the broader Zacks Business Services sector are Maximus  ((MMS - Free Report) and  Byrna Technologies (BYRN - Free Report) )

Maximus carries a Zacks Rank of #2 at present. You can sethe complete list of today’s Zacks #1 Rank stocks here

MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once. The average beat is 20.1%.

Byrna currently has a Zacks Rank of 2.

BYRN has an encouraging earnings surprise history, outpacing the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 272.5%.


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H&R Block, Inc. (HRB) - free report >>

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