3 Reasons Why Growth Investors Shouldn't Overlook H&R Block (HRB)

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with H&R Block identified as a strong candidate due to its favorable growth metrics and Zacks Rank [1][2]. Group 1: Earnings Growth - H&R Block has a historical EPS growth rate of 24%, with projected EPS growth of 19.6% for the current year, significantly outperforming the industry average of 11.2% [4]. Group 2: Cash Flow Growth - The company exhibits a year-over-year cash flow growth of 3.5%, which is notably higher than the industry average of -5.7% [5]. - Over the past 3-5 years, H&R Block's annualized cash flow growth rate has been 17.8%, compared to the industry average of 3.4% [6]. Group 3: Earnings Estimate Revisions - There have been upward revisions in current-year earnings estimates for H&R Block, with the Zacks Consensus Estimate increasing by 0.5% over the past month [8]. - The positive trend in earnings estimate revisions supports the stock's favorable outlook and correlates with potential near-term stock price movements [7]. Group 4: Overall Positioning - H&R Block holds a Zacks Rank of 2 (Buy) and a Growth Score of B, positioning it well for potential outperformance in the growth stock category [9][11].