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Is H&R Block (HRB) a Solid Growth Stock? 3 Reasons to Think "Yes"
H&R BlockH&R Block(US:HRB) ZACKSยท2024-11-11 18:46

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: H&R Block's Growth Potential - H&R Block (HRB) is highlighted as a recommended growth stock due to its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 24%, with projected EPS growth of 19.6% this year, significantly outperforming the industry average of 11.8% [5] - H&R Block's year-over-year cash flow growth stands at 3.5%, compared to an industry average of -8.5%, indicating strong cash flow performance [6] - The company's annualized cash flow growth rate over the past 3-5 years is 17.8%, well above the industry average of 3.4% [7] Group 2: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, and H&R Block's current-year earnings estimates have been revised upward by 0.5% over the past month [8][9] - The combination of a Zacks Rank 2 and a Growth Score of B positions H&R Block favorably for potential outperformance in the market [9][10]