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Here's Why You Should Invest in H&R Block (HRB) Stock Now

H&R Block, Inc. HRB is currently witnessing strong demand for its virtual product, Tax Pro Go, particularly owing to the coronavirus-led stay-at-home situation.

Although the company’s earnings for the current quarter are likely to decline as the pandemic has been affecting small businesses and tax season has been delayed, strong bottom-line growth is expected for the next quarter.

Let’s see why H&R Block is an attractive pick

Solid Rank: H&R Block currently carries a Zacks Rank #2 (Buy) and our research shows that stocks with a Zacks Rank #1 (Strong Buy) or 2, offer attractive investment opportunities for investors. You can see the complete list of today’s Zacks #1 Rank stocks here.

Positive Earnings Surprise History: H&R Block has an impressive earnings surprise history. The company outpaced the consensus mark in three of the trailing four quarters, delivering a positive earnings surprise of 1.9%, on average.

Decent Growth Prospects: The Zacks Consensus Estimate for the next-quarter earnings calls for year-over-year growth of more than 100%. The stock has a long-term expected earnings per share (EPS) growth rate of 12%.

Growth Prospects: We believe the main drivers of the company’s performance post the pandemic will be digital enablement of business, client addition and retention in both Assisted and DIY, greater usage of AI, and machine learning for product improvement and expansion in small business.

 

Other Stocks to Consider

Some other top-ranked stocks in the broader Zacks Business Services sector are SPS Commerce SPSC, SailPoint Technologies SAIL and Elastic N.V. ESTC. All three stocks carry a Zacks Rank #2 currently.

The long-term expected earnings per share (three to five years) growth rate for SPS Commerce, SailPoint and Elastic N.V. is 15%, 15% and 26% respectively.

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HR Block, Inc. (HRB): Free Stock Analysis Report
 
SPS Commerce, Inc. (SPSC): Free Stock Analysis Report
 
SailPoint Technologies Holdings, Inc. (SAIL): Free Stock Analysis Report
 
Elastic N.V. (ESTC): Free Stock Analysis Report
 
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