Shares of H&R Block HRB have jumped 26.1% over the past three months, outperforming the industry’s 22.5% return.
What Makes HRB Stock an Attractive Pick?
Solid Rank: H&R Block currently sports a Zacks Rank #1 (Strong Buy) and has 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 or 2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Three estimates for fiscal 2026 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up 4% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for HRB’s earnings is pegged at $5.18 per share, indicating 11.2% year-over-year growth. Earnings are expected to register a 9.2% increase in fiscal 2027.
AI Tax Assist Boost Top Line: HRB integrated AI Tax Assist into DIY tax preparation, which is improving its top line. This technology enhances customer experience as it aids clients who prepare a paid DIY online return without extra changes. In fiscal 2025, the company generated $383.7 million in DIY tax preparation, representing 10% of the total revenues.
Active Share Repurchases: In fiscal 2023, 2024 and 2025, the company distributed $177.9 million, $179.8 million and $197.3 million in dividends, respectively. Additionally, it returned $569 million, $379.6 million and $437.1 million through share repurchases in fiscal 2023, 2024 and 2025, respectively. This strategy improves shareholder value and their confidence in the business's long-term potential.
Solid Liquidity Profile: H&R Block’s ratio at the end of the third quarter of fiscal 2026 was 1, higher than the industry’s 0.92. While the company is positioned to precisely cover its short-term obligations, it held $887 million in cash as of the end of the third quarter of fiscal 2026, hinting at a cash-heavy balance sheet.
Other Stocks to Consider
Some other top-ranked stocks from the broader Zacks Consumer Discretionary sector are PVH Corp. PVH and Flexsteel Industries, Inc. FLXS, each currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp has a long-term earnings growth expectation of 7.5%. PVH delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Flexsteel Industries has a long-term earnings growth expectation of 12%. FLXS delivered a trailing four-quarter earnings surprise of 59%, on average.
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H&R Block, Inc. (HRB): Free Stock Analysis Report
Flexsteel Industries, Inc. (FLXS): Free Stock Analysis Report
PVH Corp. (PVH): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).