Down 10.2% in 4 Weeks, Here's Why You Should You Buy the Dip in H&R Block (HRB)

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].