In the latest trading session, H&R Block (HRB) closed at $44.99, marking a -0.62% move from the previous day. This change lagged the S&P 500's 1.53% gain on the day. At the same time, the Dow added 1.19%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the tax preparer had gained 1.07% over the past month, outpacing the Consumer Discretionary sector's loss of 5.3% and the S&P 500's loss of 3.1% in that time.
Wall Street will be looking for positivity from H&R Block as it approaches its next earnings report date. On that day, H&R Block is projected to report earnings of -$0.89 per share, which would represent a year-over-year decline of 14.1%. Our most recent consensus estimate is calling for quarterly revenue of $204.98 million, up 6.41% from the year-ago period.
HRB's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $3.55 billion. These results would represent year-over-year changes of +7.69% and +2.56%, respectively.
Investors should also note any recent changes to analyst estimates for H&R Block. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.34% higher. H&R Block is currently a Zacks Rank #2 (Buy).
In terms of valuation, H&R Block is currently trading at a Forward P/E ratio of 11.98. This valuation marks a premium compared to its industry's average Forward P/E of 11.64.
It is also worth noting that HRB currently has a PEG ratio of 0.96. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Consumer Services - Miscellaneous industry currently had an average PEG ratio of 2.02 as of yesterday's close.
The Consumer Services - Miscellaneous industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 140, putting it in the bottom 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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