H&R Block (HRB) Loses 15.3% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Core Viewpoint - H&R Block (HRB) has experienced a significant decline of 15.3% over the past four weeks, but it is now in oversold territory, suggesting a potential turnaround as analysts expect better earnings than previously predicted [1]. Group 1: Technical Analysis - The Relative Strength Index (RSI) is a key technical indicator used to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - HRB's current RSI reading is 29.37, indicating that the heavy selling pressure may be exhausting itself, which could lead to a reversal in the stock's trend [5]. Group 2: Fundamental Analysis - Analysts covering HRB have shown strong agreement in raising earnings estimates for the current year, with the consensus EPS estimate increasing by 0.1% over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term, supporting the potential for HRB's stock to rebound [7]. Group 3: Analyst Ratings - 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, indicating a strong potential for a turnaround [8].