Key Takeaways HRB has a Growth Score of A, with earnings projected to rise 6% in 2025 and 7.9% in 2026.H&R Block revenue growth is driven by higher U.S. assisted tax volumes and rising net average charges.H&R Block expands client engagement via Second Look, Spruc banking and AI-powered DIY tax tools.H&R Block (HRB) has a Growth Score of A, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.The company’s earnings are expected to increase 6% in 2025 a ...

Core Viewpoint - H&R Block, Inc. (HRB) is identified as a potentially undervalued investment opportunity, with a strong business model and consistent cash flows, despite market perceptions of stagnation and decline [1][13][14] Company Overview - H&R Block is a leading provider of tax preparation services in the U.S. and Canada, serving millions of individuals and small businesses annually [2] - The company has a recurring customer base and a seasonal yet highly cash-generative operating model [2] Valuation Metrics - H&R Block's Intrinsic Value to Price (IV/P) is 1.50, indicating the market prices the company at only two-thirds of its estimated intrinsic value [4] - The Acquirer's Multiple stands at 8.10×, which is attractive for a mature service business with resilient recurring revenues [5][9] Financial Performance - Revenue for the trailing twelve months (TTM) is approximately $3.77 billion, with a net income of around $610 million and operating margins above 20% [10][6] - The company generates strong free cash flow of about $576 million, reflecting efficient capital expenditure requirements [11][10] Balance Sheet Strength - H&R Block maintains a manageable net debt of approximately $1.36 billion and a strong cash generation capability [11][7] - The balance sheet shows large temporary liabilities during tax season, which unwind as revenue comes in [7] Capital Returns - The company has a shareholder-friendly capital return program, consistently targeting excess free cash flow towards buybacks and dividends [12] - H&R Block has a history of reducing share count through aggressive buybacks [11][12] Market Perception - Despite strong cash flows and a resilient customer base, the market views H&R Block as a low-growth business threatened by digital disruption [13] - The company's digital offerings continue to grow, contributing to its stable revenue and profitability [17] Conclusion - H&R Block represents a blend of quality, stability, and deep value, making it an attractive opportunity for value investors seeking predictable cash flows and prudent management [14]

H&R Block, Inc. ( HRB ) has steadily improved their financial position in the past years. They have good momentum with good growth for both the bottom and top-line. What first caught my attention was theirHi, my name is Sander Pettersen Heio, and I’m based in Norway. My investment focus spans small-cap to mid-cap companies and foreign equities, with a particular emphasis on the Nordic market. I analyze businesses across diverse industries, identifying both established players and emerging growth leaders. Be ...

Core Insights - H&R Block has shown consistent improvement in its financial position over recent years, indicating strong momentum in both revenue and profit growth [1] Financial Performance - The company has experienced good growth for both bottom-line and top-line metrics, suggesting effective operational strategies and market positioning [1]

A downtrend has been apparent in H&R Block (HRB) lately with too much selling pressure. The stock has declined 15.3% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. Thi ...

Core Insights - The consumer discretionary sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1][2] Company Summaries - **Bath & Body Works Inc (NYSE:BBWI)**: Reported worse-than-expected Q3 results and lowered FY25 EPS guidance. Stock fell approximately 35% in the past month, with a 52-week low of $14.28. RSI value is 29.3, and shares rose 8.6% to close at $16.90 [8] - **Lotus Technology Inc – ADR (NASDAQ:LOT)**: Posted a Q3 loss of 10 cents per share, an improvement from a loss of 30 cents per share a year ago. Stock fell around 31% in the past month, with a 52-week low of $1.06. RSI value is 29.5, and shares rose 3.2% to close at $1.29 [8] - **H & R Block Inc (NYSE:HRB)**: Reported better-than-expected Q1 results, indicating a strong start for fiscal 2026. Stock fell about 20% in the past month, with a 52-week low of $41.38. RSI value is 26.9, and shares rose 1.3% to close at $41.94 [8]

The most oversold stocks in the consumer discretionary sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major overso ...

Core Insights - Artificial intelligence is poised to transform business operations for many U.S. companies, leading to significant profit opportunities for some while posing existential threats to others [1] Industry Impact - The integration of artificial intelligence into business practices is expected to create a competitive landscape where companies that adapt quickly may see substantial profit gains [1] - Conversely, companies that fail to embrace AI technology may face severe challenges, potentially jeopardizing their survival in the market [1]

Core Insights - Hyperscalers are investing heavily in AI infrastructure, leading to speculation about when small- and mid-cap stocks will benefit from this technology [1] - Goldman Sachs identifies distinct phases of AI development, with current gains concentrated in hardware makers like Nvidia, while suggesting investors should focus on the next phase [1][2] AI Adoption and Market Focus - Despite ongoing AI adoption, returns have primarily been seen in the infrastructure sector rather than in applications or productivity [2] - Analysts note that corporate AI adoption and concerns about AI infrastructure risks have shifted investor focus towards potential beneficiaries of AI-driven productivity gains [3] Companies Highlighted for AI Potential - Goldman Sachs has identified several companies that are sensitive to AI disruption and have high labor costs, making them potential beneficiaries of AI productivity gains [4] - Five stocks were flagged, including H&R Block, Robert Half, and Cognizant, which are expected to see significant profit boosts from AI adoption [4] Detailed Company Analysis - **H&R Block (Ticker: HRB)** - Share of wage bill exposed to AI automation: 41% - Labor costs as % of sales: 46% - Average percentile rank of potential AI boost among Russell 1000 companies: 97th - Potential boost to earnings: 51% [5] - **Robert Half (Ticker: RHI)** - Share of wage bill exposed to AI automation: 38% - Labor costs as % of sales: 79% - Average percentile rank of potential AI boost among Russell 1000 companies: 96th - Potential boost to earnings: 270% [5] - **Cognizant Technology Solutions** - Specific data not provided, but included among the companies expected to benefit from AI adoption [4]

Core Viewpoint - H&R Block (HRB) has faced significant selling pressure, resulting in a 10.2% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously expected, indicating potential for recovery [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if HRB is oversold, with a current RSI reading of 29.09 suggesting that selling pressure may be exhausting, paving the way for a potential rebound [2][5]. - RSI serves as a momentum oscillator that measures price movement speed and change, oscillating between zero and 100, with values below 30 indicating oversold conditions [2][3]. Group 2: Fundamental Analysis - There is a consensus among sell-side analysts that earnings estimates for HRB have increased by 0.1% over the last 30 days, which typically correlates with price appreciation in the near term [7]. - HRB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].