H&R Block (HRB) may be a boring tax prep stock.
But it’s also been one of the most explosive.
Most recently, it pulled back slightly at the start of 2023. But we believe it’ll recover well, and push aggressively higher on tax season and its strong earnings growth.
For one, while the company’s first-quarter revenue of $180 million missed expectations for $181.76 million, results were still in line. Plus, according to Tony Bowen, H&R Block’s chief financial officer. “We continued to execute share repurchase, buying back another 3% of shares outstanding in the quarter, and are reaffirming our outlook that includes topline growth, EBITDA that outpaces revenue, and EPS that grows even faster,” as noted by TheFly.com.
We’ll get a better idea of growth when the company posts Q2 earnings on February 7.
Two, the company carries an attractive dividend yield of 3.04%. We expect for the company to announce another dividend increase shortly. And three, the HRB stock has a history of running higher every April. For example, in April 2020, HRB ran from about $12.50 to $17.50. In 2021, HRB ran from about $17.50 to about $25. And in 2022, it ran from $26 to $34.
We believe HRB could run again in the 2023 tax season.
