H&R Block (HRB) Rises 37% in a Year: Here's What to Know

H&R Block, Inc. HRB has had an impressive run over the past year. The stock has appreciated 37%, significantly outperforming the 14% rally of the industry it belongs to and the 33% growth of the Zacks S&P 500 composite.

What’s Behind the Rally

Commitment to shareholder returns makes H&R Block a reliable way for investors to compound wealth over the long term. The company paid $177.9 million, $186.5 million and $195.1 million in dividends in fiscal 2023, 2022 and 2021, respectively. It repurchased shares worth $550.2 million, $563.2 million and $191.3 million, respectively, in fiscal 2023, 2022 and 2021.

H&R Block, Inc. Price

H&R Block, Inc. Price

H&R Block, Inc. price | H&R Block, Inc. Quote

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

H&R Block has a five-year strategy called Block Horizons in place, which is expected to help the company deliver sustainable revenues and operating profit growth, improve return on investments and maintain strong balance sheet and liquidity positions.

H&R Block’s current ratio (a measure of liquidity) at the end of the second quarter of fiscal 2024 was pegged at 1.21, higher than the prior quarter’s 0.80 and the year-ago quarter’s 1.2. A current ratio of more than one often indicates that the company will be able to easily pay off its short-term obligations.

Zacks Rank and Other Stocks to Consider

Xerox currently carries a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks in the broader Zacks Business Services sector are Barrett Business Services BBSI and Jamf JAMF.

Barrett Business Services carries a Zacks Rank of 2 (Buy) at present. BBSI has a long-term earnings growth expectation of 14%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BBSI delivered a trailing four-quarter earnings surprise of 77.7%, on average.

Jamf carries a Zacks Rank of 2 at present. JAMF has a long-term earnings growth expectation of 22.5%.

JAMF delivered a trailing four-quarter earnings surprise of 49.4%, on average.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Barrett Business Services, Inc. (BBSI) : Free Stock Analysis Report

Jamf Holding Corp. (JAMF) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.