H&R Block, Inc. (HRB) is a tax return preparation service provider that has performed extremely well over the past year and has the potential to sustain momentum in the near term. Consequently, if you have not taken advantage of the share price appreciation yet, you should add the stock to your portfolio now.What Makes HRB an Attractive Pick?An Outperformer: A glimpse at the company’s price trend reveals that the stock has had an impressive run over the year. Shares of H&R Block have returned 20.3% in a yea ...

Company Analysis - Block (NYSE: SQ) was a top pick for 2024 and has performed well, though some investors question if the rally feels "under-cooked" given the extended valuations of many growth stocks amidst potentially irrational exuberance [1] - Julian Lin, a financial analyst, focuses on finding undervalued companies with secular growth, strong balance sheets, and management teams in sectors with long growth runways [1] - Julian Lin's investment approach combines growth-oriented principles with strict valuation hurdles to add an additional layer of safety [1] Investment Strategy - Julian Lin leads the investing group Best Of Breed Growth Stocks, which shares positions in stocks with a high probability of delivering large alpha relative to the S&P 500 [1] - The group provides exclusive access to Julian's highest conviction picks, full stock research reports, real-time trade alerts, macro market analysis, individual industry reports, a filtered watchlist, and community chat with 24/7 access to Julian [1] Disclosure - The analyst has a beneficial long position in Block (NYSE: SQ) through stock ownership, options, or other derivatives [2] - The analyst is long all positions in the Best of Breed Growth Stocks Portfolio [2]

Stock Performance and Market Context - Block (SQ) ended the recent trading session at $91 94, showing a -0 24% change from the previous day's closing price, underperforming the S&P 500's 0 55% gain and the Nasdaq's 1 24% gain, while the Dow lost 0 06% [1] Upcoming Financial Results and Estimates - The company is anticipated to report an EPS of $0 82 in its upcoming release, marking an 82 22% increase compared to the same quarter of the previous year [2] - Revenue is expected to reach $6 11 billion, up 5 92% from the prior-year quarter [2] - Recent changes to analyst estimates for Block indicate shifting near-term business trends, with positive revisions reflecting confidence in the company's performance and profit potential [3] Valuation Metrics - Block currently has a Forward P/E ratio of 21 11, which is a discount compared to its industry's Forward P/E of 25 08 [5] - The company trades at a PEG ratio of 0 49, significantly lower than the Technology Services industry average PEG ratio of 1 54 [6] Industry Context - The Technology Services industry, part of the Business Services sector, holds a Zacks Industry Rank of 61, placing it in the top 25% of all 250+ industries [7] - Industries in the top 50% of the Zacks Industry Rank outperform the bottom half by a factor of 2 to 1 [7] Analyst Ratings and Model - Block currently has a Zacks Rank of 3 (Hold), with a 0 7% decline in the Zacks Consensus EPS estimate over the past month [5] - The Zacks Rank system, which incorporates estimate changes, has a strong track record, with 1 stocks delivering an average annual return of +25% since 1988 [5]

Block (SQ) is investing aggressively in expanding its partner base, aiming to scale its distribution network. It recently inked a partnership with Sysco, a leading global foodservice distributor, which will help food and beverage sellers operate in a smoother way.Sysco’s Restaurant Solutions program is popular among food and beverage providers. Under the terms of the latest partnership, Sysco will co-promote and market Square’s technology suite to its customers.Rich Partner Base Aids SQ’s ProspectsBlock’s s ...

Goldman Sachs analyst Will Nance reiterated a Buy rating on Block, Inc. SQ with a price target of $102.The analyst said that he hosted a call with Block investor relations, and the company remains committed to achieving Rule of 40 performance by 2026, with mid-teens gross profit growth, margin expansion, and GPV acceleration expected in 2025.SQ’s stock has surged post-election, benefiting from SMB exposure, pro-cyclical trends, deregulation, and crypto market involvement, alongside a previously attractive v ...

Key TakeawaysBlock’s shares were recently higher after dropping yesterday, extending a pullback from early December highs after a steady climb from summer levels. An upgrade from Oppenheimer, which boosted its rating to “outperform” from “perform," and a bullish price target lifted the stock.The analysts cited the expectation of payment value growth at its Square business, an upbeat outlook for profit margins, and its bitcoin mining business as tailwinds for the shares.  Shares of Block rose Thursday mornin ...

Core Viewpoint - The New Civil Liberties Alliance (NCLA) is advocating for the rejection of the government's request to stay a preliminary injunction against the enforcement of the Corporate Transparency Act (CTA), arguing that the statute is unconstitutional and exceeds Congress's regulatory authority [1]. Group 1: Corporate Transparency Act (CTA) - The CTA requires organizations that have incorporated under state law to submit detailed reports containing sensitive information to the Department of the Treasury, with penalties for non-compliance [2]. - The requirements of the CTA apply to both non-profit and certain for-profit organizations, regardless of their involvement in commercial transactions or economic activities [2]. Group 2: Legal Arguments Against CTA - The government is unlikely to succeed in claiming that the CTA falls under Congress's regulatory power as per the Commerce Clause, as the act of incorporation itself is not considered economic activity [3]. - The Supreme Court has established that regulation cannot be justified based on anticipated future economic activity that has not yet occurred [3]. Group 3: NCLA's Position - NCLA argues that the federal government cannot regulate the creation and existence of corporate entities based on the assumption that they will engage in commerce in the future, drawing a parallel to the regulation of individuals based on their birth [4].

Core Insights - Despite rising debt levels straining household budgets, holiday spending is on the rise, indicating a paradox of optimism amidst financial pressures [1][2][3] Group 1: Consumer Sentiment and Spending - A significant 66% of Americans across various income levels and generations express optimism regarding income growth and financial stability, despite the looming threat of debt [2] - Holiday shopping exceeded expectations during Black Friday and Cyber Monday, reflecting an increase in buying power among consumers [3][4] - One-third of respondents reported spending more than they earned in the past year, highlighting a disconnect between income and expenditure [6] Group 2: Debt Burden - Gen X holds the highest credit card debt at 55%, followed by Millennials at 49%, Boomers at 47%, and Gen Z at 39%, with Gen Z feeling the most burdened by their debt [4] - Approximately 66% of individuals with credit card debt consider their debt levels unmanageable, indicating a widespread financial strain [4][5] - One in six Americans holds student debt, with over a third reporting that their debt is unmanageable [5] Group 3: Financial Management and Support - H&R Block aims to assist consumers in navigating financial pressures by providing tools and guidance to manage finances effectively [3][7] - The company emphasizes the importance of understanding generational financial concerns to better support clients throughout the year [7]

Group 1 - Block, Inc (NYSE: SQ) experienced a post-COVID boom followed by a significant selloff during the inflationary period, remaining range bound for over two years before breaking out in early December [1] - The recent stock breakout has attracted renewed interest from retail investors, particularly those focused on semiconductors and fintech sectors [1]

Core Insights - Block has shown impressive historical growth, generating over $2.2 billion in gross profit for the three months ending September 30, marking a 19% year-over-year increase and doubling the figure from three years ago [3] - The company has significant growth potential, with a forecasted gross profit opportunity of $130 billion for Square and $75 billion for Cash App, indicating ample room for future expansion [5] Group 1: Growth Strategy - Block's strategy includes continuous product enhancements, such as an AI tool for merchant onboarding and integrating Afterpay into Cash App, aimed at better meeting user financial needs [4] - The leadership believes that the company has only begun to tap into its total addressable market, suggesting a long-term growth trajectory [5] Group 2: Driving Efficiencies - In response to the tighter macroeconomic conditions, Block has focused on increasing operational efficiencies, successfully reducing its employee count to below 12,000 by the end of 2023 [8] - This focus on expense control is projected to lead to an adjusted operating income of nearly $1.6 billion in 2024, representing a 344% year-over-year increase, with further annual growth expected at 51% over the next two years [9] Group 3: Block and Bitcoin - Jack Dorsey, the CEO, is a strong proponent of Bitcoin, believing it will become the native currency of the internet, especially with the rise of AI [11] - Block holds $530 million in Bitcoin on its balance sheet and is actively developing projects to enhance Bitcoin adoption, including hardware wallets and mining equipment [12] - Investors considering Block shares should also be optimistic about Bitcoin's long-term prospects, as it is becoming increasingly integral to the company's business model [13]