Reasons Why You Should Invest in H&R Block (HRB) Stock Now
H&R Block, Inc. HRB is a consumer services company that has performed exceptionally well in the past year and has the potential to sustain this momentum in the near term. Consequently, if you haven’t taken advantage of its 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 gained 38.4% against 34.2% decline of the industry it belongs to.
H&R Block, Inc. Price
H&R Block, Inc. price | H&R Block, Inc. Quote
Solid Rank: H&R Block has a Zacks Rank #1 (Strong Buy) and a Value Growth Momentum Score (VGM Score) of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), 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. Two 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 2022 earnings has moved up 16.6%.
Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company has a trailing three-quarters average earnings surprise of 21%.
Growth Factors: 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 earn sustainable revenues and operating profit growth, improve return on investments, and maintain a strong balance sheet and liquidity position.
We believe 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, machine learning for product improvement, and expansion in small business.
Other Stocks to Consider
Some other stocks in the broader Zacks Business Services sector that investors can consider are Avis Budget Group, Inc. CAR, Cross Country Healthcare CCRN and Automatic Data Processing, Inc. ADP.
Avis Budget sports a Zacks Rank #1 at present. CAR has a long-term earnings growth expectation of 19.4%.
Avis Budget delivered a trailing four-quarter earnings surprise of 102%, on average.
Cross Country Healthcare sports a Zacks Rank of 1. CCRN has a long-term earnings growth expectation of 6.9%.
Cross Country Healthcare delivered a trailing four-quarter earnings surprise of 29.2%, on average.
Automatic Data Processing carries a Zacks Rank of 2 (Buy), currently. ADP has a long-term earnings growth expectation of 12%.
Automatic Data Processing delivered a trailing four-quarter earnings surprise of 6.2%, on average.
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Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report
Avis Budget Group, Inc. (CAR) : Free Stock Analysis Report
H&R Block, Inc. (HRB) : Free Stock Analysis Report
Cross Country Healthcare, Inc. (CCRN) : Free Stock Analysis Report
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