H&R Block, Inc. HRB has performed exceptionally well in the past year and has the potential to sustain this momentum in the near term. Consequently, if you haven’t taken advantage of its share price appreciation yet, it’s time you add the stock to your portfolio.

What Makes HRB an Attractive Pick?

An Outperformer: A glimpse at this consumer services company’s price trend reveals that the stock has had an impressive run over the past year. Shares of H&R Block have gained 22%, significantly outperforming the 8% growth of the industry it belongs to.

Solid Rank and VGM Score: H&R Block has a Zacks Rank #2 (Buy) and a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best investment opportunities for investors. Thus, the company is a compelling investment proposition at the moment.

Northward Estimate Revisions: One estimate for fiscal 2025 has moved north in the past 30 days versus no southward revision. The Zacks Consensus Estimate for HRB’s fiscal 2025 earnings has increased 0.6% in the past 30 days.

Strong Growth Prospects: The company has an expected long-term (three to five years) earnings per share growth rate of 12.5%. Its fiscal 2025 earnings are expected to improve 19.7% year over year.

Positive Earnings Surprise History: HRB has an impressive earnings surprise history. The company outpaced the Zacks Consensus Estimate in all the trailing four quarters, delivering an average earnings surprise of 9.9%.

Growth Factors: H&R Block’s focus on providing essential services like tax preparation and financial advice ensures its relevance even during economic downturns. This stability appeals to investors seeking defensiveness in their portfolios.

H&R Block has a solid history of consistently paying dividends and repurchasing shares, demonstrating its commitment to rewarding shareholders. In fiscal 2024, 2023 and 2022, the company distributed dividends of $179.8 million, $177.9 million and $186.5 million, respectively. During the same periods, it bought back shares worth $350.1 million, $550.2 million and $563.2 million, respectively. These actions highlight H&R Block's focus on increasing shareholder value and confidence in the business' long-term outlook.

Other Stocks to Consider

Some other top-ranked stocks are RB Global, Inc. RBA and Verisk Analytics VRSK.

RB Global carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

RBA has a long-term earnings growth expectation of 10.6%. It delivered a trailing four-quarter earnings surprise of 16.3%, on average.

Verisk Analytics carries a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 12%. VRSK delivered a trailing four-quarter earnings surprise of 4.2%, on average.

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H&R Block, Inc. (HRB) : Free Stock Analysis Report

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