HRB

H&R Block has seen its share price fall back over the past month, which sits against a much stronger run over several years and puts fresh focus on what investors are paying for its earnings today. With the stock now trading around US$42.32, the key issue is how that tag lines up with the profit stream the tax preparation group produces. - Over the past 5 years the share price has gained about 96.6%, so any reassessment of the earnings multiple now matters a lot for anyone thinking about the next leg of the story. - The business model is built around recurring tax preparation services and related products, which can support relatively visible earnings and raises the question of how much predictability is already reflected in the P/E and other profit based ratios. - There is a second opinion on H&R Block worth weighing. See what analysts think H&R Block's shares could be worth. The stock's next move may depend on whether the current price can be squared with H&R Block's earnings profile. If you are weighing whether H&R Block's P/E still makes sense after its recent pullback, it can help to compare that question across 28 high quality undervalued stocks. The P/E ratio fits H&R Block reasonably well because earnings come from a recurring, seasonal service that many households use every year. On that yardstick, H&R Block trades on about 7.1x earnings, which is well below the Consumer Services industry average of roughly 13.5x and also under the broader peer group on about 18.6x. For a business built around tax preparation, that is a low headline multiple for each dollar of profit the market is currently willing to pay. The fair P/E that would typically line up with H&R Block's mix of margins, risk profile and size appears higher than the current 7.1x. As a result, the shares look undervalued on this framework. The key question for you is whether the earnings that support this multiple feel durable enough for that discount to matter, or whether the low P/E simply reflects caution around how dependable the profit stream will be across different tax seasons. Explore the numbers behind H&R Block's P/E valuation. Simply Wall St Narratives for H&R Block pick up where the valuation puzzle leaves off by spelling out the specific assumptions on future earnings, margins and growth that would need to hold for the stock to be worth materially more or materially less than today's price on the Community page. Rather than relying on a single P/E or model output, each narrative lays out the key drivers behind its view of fair value so you can compare those assumptions with how H&R Block's results evolve over time. Bullish and cautious holders of H&R Block are looking at the same guidance and tax trends but reach very different conclusions about what the current valuation implies. Bull case: 29% undervalued "The increasing complexity of the U.S. tax code, including new legislative changes and stricter IRS enforcement, is driving more affluent and gig-economy clients to seek expert assistance…" Discover why this Narrative puts H&R Block at 29% undervalued. Bear case: 18% overvalued "Rapid automation and artificial intelligence advances in tax processing are expected to reduce demand for assisted tax preparation over the coming years, directly threatening H&R Block's core revenue streams…" Explore why this Narrative puts H&R Block at 18% overvalued. Before you weigh any conclusion on H&R Block, it helps to know that our broader checks have flagged specific concerns that sit outside the valuation work covered here. Take a closer look at 1 warning sign before settling on a valuation. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Intuit Inc. INTU used its 2026 Investor Day to reinforce a message: management expects fiscal 2027 to deliver growth despite a tougher operating backdrop. The company reaffirmed revenue growth of 9-10% and non-GAAP EPS growth of 23-24%, while outlining a longer-term plan centered on AI, higher-value services and deeper engagement across QuickBooks, TurboTax and Credit Karma. The market, however, has been far less patient. INTU closed at $313.13 on Sept. 17 and has lost roughly 52% year to date. That trails H&R Block HRB, which has risen nearly 3%, and Block XYZ, which has gained roughly 18%, year to date, showing how much skepticism is already reflected in Intuit’s shares after a reset in software valuations. That disconnect makes the investment case more interesting. The outlook remains healthy, the valuation has compressed materially and Intuit’s higher-growth businesses are scaling. Yet slower customer additions, tax-share pressure and a weak Mailchimp outlook keep execution risk firmly in focus. Image Source: Zacks Investment Research For fiscal 2027, Intuit expects revenues of $23.28-$23.51 billion, up 9%-10%. Global Business Solutions is projected to grow 13-14%, while Consumer growth is expected at 4%-6%. Credit Karma remains a key driver, with 11-13% growth expected, but TurboTax is guided to just 2-3% and Mailchimp to a range of down 1% to flat. Management also expects non-GAAP EPS of $22.88-$23.12, up 23-24%. This is below the Zacks Consensus Estimate of $23.49.First-quarter guidance indicates 11% revenue growth and 30-33% non-GAAP EPS growth to a range of $2.44 to $2.48, giving investors a near-term test of whether the full-year plan is on track. The consensus mark for the same presently stands at $2.46, which is within the guided range. The longer-term case rests on Intuit’s ability to turn its large data set and product ecosystem into higher-value automated services. At Investor Day, management highlighted assisted tax, money and mid-market offerings as its “Big Bets.” These growth engines expanded more than 30% in fiscal 2026 and now represent about 30% of total revenues. Intuit Intelligence is also being embedded across tax, accounting, payments and business workflows, which could raise engagement and average revenue per customer while reducing manual work. Management is targeting at least high-teens annual non-GAAP EPS growth over the longer term, which keeps earnings compounding central to the story. That strategy gives Intuit a broader growth path than HRB’s more tax-focused model and a different mix than XYZ’s payments and financial-services ecosystem. Still, HRB and XYZ remain useful reference points because both compete for parts of the consumer, small-business and financial-services wallet. The key concern is that monetization has been stronger than customer expansion. Intuit acknowledged that new-customer growth did not meet its expectations in fiscal 2026. TurboTax lost one point of IRS e-file share and three points of DIY tax e-file share, while Business Platform total online paid-customer growth slowed to 4%.Management’s priorities now include accelerating customer growth, broadening product entry points and scaling the Big Bets further. Those efforts need to convert into better volume growth, not just higher pricing and mix. INTU’s estimates for fiscal 2027 have been revised southward over the past month. However, the same for fiscal 2028 has been revised marginally upward over the past week. Image Source: Zacks Investment Research Intuit’s steep share-price decline has made its valuation more reasonable. On a forward 12-month Price/Sales basis, INTU trades at about 3.53X, below the Zacks Computer-Software industry average of 6.05X. However, it still commands a premium to H&R Block and Block, which trade at lower forward sales multiples. This premium reflects Intuit’s stronger recurring software mix, broader ecosystem and higher growth profile. The current valuation looks less demanding than before, but further upside will likely depend on stronger customer growth, sustained Global Business Solutions momentum and clearer monetization from Intuit Intelligence.Valuation Image Source: Zacks Investment Research For investors already in INTU, the best stance appears to be patient rather than aggressive. Reaffirmed guidance, strong Business Platform growth, AI-led automation and a lower valuation improve the risk-reward profile after the steep share-price reset. Still, slower new-customer growth, weaker TurboTax share trends and a flat-to-down Mailchimp outlook argue against chasing the stock before execution improves. The next checkpoints are fiscal first quarter delivery, stabilization in customer additions and evidence that Intuit Intelligence is driving measurable retention and monetization. With solid earnings growth balanced by execution questions, maintaining existing exposure while waiting for clearer proof of reacceleration looks reasonable from here.At present, INTU carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Intuit Inc. (INTU) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Alluvium Asset Management, an asset management company, released its “Conventum – Alluvium Global Fund” second-quarter 2026 investor letter. The letter can be downloaded here. The second quarter reflected a sharp shift from geopolitical uncertainty and oil market volatility to a powerful equity rally led by semiconductor companies. Despite the broader market strength, the Fund declined 1.4% in EUR terms, 2.2% in USD terms, and 3.9% in AUD terms. Portfolio results were mixed, with Alphabet benefiting from strong Cloud growth, while Robert Half, H&R Block and other holdings posted solid gains. However, cable businesses and several healthcare and consumer holdings weighed on performance. Also, check the fund’s top five holdings to see its best picks in 2026. In its second-quarter 2026 investor letter, Conventum – Alluvium Global Fund highlighted Lockheed Martin Corporation (NYSE:LMT). Lockheed Martin Corporation (NYSE:LMT) is a US-based aerospace and defense company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. On September 16, 2026, Lockheed Martin Corporation (NYSE:LMT) closed at $537.25 per share. Over the past month, Lockheed Martin Corporation (NYSE:LMT) declined 5.99% and its shares gained 13.43% over the past 52 weeks. Lockheed Martin Corporation (NYSE:LMT) has a market capitalization of $1123.99 billion with a 52-week trading range between $437.25 and $692.00. Conventum – Alluvium Global Fund stated the following regarding Lockheed Martin Corporation (NYSE:LMT) in its Q2 2026 investor letter: Lockheed Martin Corporation (NYSE:LMT) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 75 hedge fund portfolios held Lockheed Martin Corporation (NYSE:LMT) at the end of the second quarter which was 83 in the previous quarter. While we acknowledge the potential of Lockheed Martin Corporation (NYSE:LMT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we discussed the stock and shared Sweden's plan to purchase Lockheed Martin Corporation (NYSE:LMT) HIMARS launchers plus ammunition. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. This article is originally published at Insider Monkey.

It has been about a month since the last earnings report for H&R Block (HRB). Shares have lost about 16.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is H&R Block due for a breakout? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for H&R Block, Inc. before we dive into how investors and analysts have reacted as of late. H&R Block reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. HRB’s adjusted earnings of $2.38 per share topped the Zacks Consensus Estimate of $2.23 by 6.7% and increased 4.8% year over year. Revenues of $1.14 billion surpassed the consensus mark of $1.12 billion by 2.5% and rose 3% year over year. Assisted tax preparation and Wave contributed to growth. During fiscal 2026, client conversion improved 200 basis points, while retention increased 190 basis points. U.S. tax preparation and related services revenues increased 2.8% year over year to $1 billion in the fiscal fourth quarter. Assisted tax preparation revenues rose 4.1% to $714.2 million, while Refund Transfer revenues advanced 6.4% to $23.7 million. Tax Identity Shield revenues increased 15.8% to $17.3 million. The company maintained Assisted category market share during the 2026 tax season after two consecutive years of improvement. Company-owned tax returns increased 2% for fiscal 2026, while net average charge at company-owned operations rose 4% to $282.89. Management attributed stronger performance to improved conversion, retention and a shift toward more complex clients. International revenues increased 5.6% year over year to $94.9 million in the quarter. Wave revenues climbed 12.3% to $33.2 million, continuing momentum in the company's small-business offering. For fiscal 2026, Wave posted its second consecutive year of double-digit revenue growth, supported by paid ProTier subscriptions and higher payments volume. Management continues to view small-business services as an important growth opportunity as it integrates expert advice, products and digital capabilities. Fiscal fourth-quarter operating expenses increased 3.8% year over year to $768.1 million. Compensation and benefits rose to $396.8 million from $383.1 million, while occupancy costs increased to $117.5 million from $112.8 million. Marketing and advertising expenses advanced to $69.1 million. EBITDA increased 1.8% to $420.5 million. Adjusted net income declined 1.6% to $304.2 million, but adjusted earnings per share rose as the weighted-average share count fell 6.3% to 127 million. The reduction reflects H&R Block's continued share repurchases. Management highlighted continued improvement in the quality of its client base. The share of clients within its targeted household adjusted gross income range of $50,000-$200,000 has increased from 38% to 50% over the past few years. H&R Block is serving more clients with investment income, small-business needs and more complex income streams. Technology remained central to the strategy. Artificial Intelligence (AI) Tax Assist handled 4.2 million client interactions during the season and generated nearly twice the engagement of the prior year. Client Experience Monitors contributed to a 550-basis-point increase in product attachment, while the company's Sidekick AI assistant supported tax professionals handling complex questions. H&R Block generated $838.7 million of operating cash flow in fiscal 2026 and $756.1 million of free cash flow. It returned $713.7 million to shareholders through dividends and share repurchases, including $500.3 million spent to repurchase about 10.5 million shares. The board raised the quarterly dividend by 10% to 46 cents per share. For fiscal 2027, HRB expects revenues to be between $4.11 billion and $4.16 billion. The company has guided its adjusted earnings in the range of $6.04 to $6.24 per share. The consensus estimate for the same is $5.81 per share. Adjusted EBITDA is projected in the range of $1.11 billion to $1.14 billion. The effective tax rate is forecasted at roughly 23%. HRB expects about $400 million of share repurchases in fiscal 2027 and has approximately $600 million remaining under its current $1.5 billion authorization. Management expects industry growth to remain below the historical norm but sees opportunities from assisted market-share performance, small-business growth and selective franchise acquisitions. The company plans greater investment in automation and its consultative client experience while maintaining cost discipline. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -8.59% due to these changes. Currently, H&R Block has a average Growth Score of C, a grade with the same score on the momentum front. However, the stock was allocated a score of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, H&R Block has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. 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 This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer discretionary - specialized consumer services stocks, including H&R Block (NYSE:HRB) and its peers. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Some consumer discretionary companies don’t fall neatly into a category because their products or services are unique. Although their offerings may be niche, these companies have often found more efficient or technology-enabled ways of doing or selling something that has existed for a while. Technology can be a double-edged sword, though, as it may lower the barriers to entry for new competitors and allow them to serve customers better. The 9 consumer discretionary - specialized consumer services stocks we track reported a slower Q2. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 1% above. While some consumer discretionary - specialized consumer services stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results. Founded in 1955 by brothers Henry W. Bloch and Richard A. Bloch, H&R Block (NYSE:HRB) is a tax preparation company offering professional tax assistance and financial solutions to individuals and small businesses. H&R Block reported revenues of $1.14 billion, up 3% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a very strong quarter for the company with full-year revenue and full-year EBITDA guidance beating analysts’ expectations. "Fiscal 2026 provided meaningful evidence that the strategic choices we are making are strengthening H&R Block," said Curtis Campbell, president and chief executive officer. H&R Block achieved the biggest analyst estimate beat and highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 9.2% since reporting and currently trades at $50.99. Is now the time to buy H&R Block? Access our full analysis of the earnings results here, it’s free. Established in 2018 as a spin-off from ServiceMaster Global Holdings, Frontdoor (NASDAQ:FTDR) is a provider of home warranty and service plans. Frontdoor reported revenues of $645 million, up 4.5% year on year, in line with analysts’ expectations. The business had a strong quarter with full-year EBITDA guidance topping analysts’ expectations and a beat of analysts’ EPS estimates. Frontdoor scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $82.67. Is now the time to buy Frontdoor? Access our full analysis of the earnings results here, it’s free. Originally a death care company, Matthews International (NASDAQ:MATW) is a diversified company offering ceremonial services, brand solutions and industrial technologies. Matthews reported revenues of $246 million, down 29.6% year on year, falling short of analysts’ expectations by 7%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates and full-year EBITDA guidance missing analysts’ expectations. Matthews delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 23.7% since the results and currently trades at $21.11. Read our full analysis of Matthews’s results here. Founded in 1993 and headquartered in Louisiana, Pool (NASDAQ:POOL) is one of the largest wholesale distributors of swimming pool supplies, equipment, and related leisure products. Pool reported revenues of $1.82 billion, up 2.2% year on year. This print was in line with analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates and full-year EPS guidance missing analysts’ expectations. The stock is down 6% since reporting and currently trades at $184.35. Read our full, actionable report on Pool here, it’s free. Known by many for its old cable television commercials, WeightWatchers (NASDAQ:WW) is a wellness company offering a range of products and services promoting weight loss and healthy habits. WeightWatchers reported revenues of $162.3 million, down 14.2% year on year. This number surpassed analysts’ expectations by 2%. More broadly, it was a satisfactory quarter as it also produced a beat of analysts’ EPS estimates but a miss of analysts’ EBITDA estimates. WeightWatchers had the weakest full-year guidance update of the whole group. The stock is up 15.2% since reporting and currently trades at $17.75. Read our full, actionable report on WeightWatchers here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Intuit Inc. INTU is set to report its fourth-quarter 2026 results on Aug. 25, after market close. The financial technology company expects fourth-quarter revenues to increase approximately 11-12% year over year. Management projects non-GAAP earnings of $3.56-$3.62 per share, while GAAP earnings are expected in the range of 73-79 cents per share. The sharp difference between GAAP and adjusted earnings primarily reflects restructuring and other non-GAAP adjustments. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $4.27 billion, indicating an increase of 11.5% from the year-ago quarter’s reported figure. The consensus mark for earnings is pinned at $3.59 per share and remains unchanged over the past two months. It indicates growth of 30.6% from the figure reported in the year-ago quarter. Image Source: Zacks Investment Research The company’s EPS surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 6.87%. The graph below depicts this surprising history: Image Source: Zacks Investment Research Our proprietary model does not conclusively predict an earnings beat for Intuit this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here. You can see the complete list of today’s Zacks #1 Rank stocks here. Intuit has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Intuit is set to report fourth-quarter results, with solid business momentum and continued progress across its consumer and small-business platforms. Growth is likely to have been supported by continued strength in QuickBooks and the broader Online Ecosystem. Higher customer engagement, increased adoption of payments and payroll services and expansion of Intuit’s money offerings are expected to have remained key drivers. Credit Karma and TurboTax Live are also likely to have contributed to the quarter. Strength in personal loans and insurance has supported Credit Karma, while greater adoption of assisted tax offerings continues to benefit the TurboTax franchise. However, softer tax-unit trends could have partly offset these positives. Intuit’s AI-driven strategy and ongoing expansion into mid-market solutions is expected to have provided an additional boost. Continued adoption of AI-powered tools across its platform, along with efforts to deepen customer relationships and improve operating efficiency, may have helped support durable growth over the longer term. For the fourth quarter of fiscal 2026, the Zacks Consensus Estimate for Intuit’s Global Business Solutions revenues is pegged at $3.39 billion, suggesting year-over-year growth of 12.4%. The consensus mark for Intuit’s Consumer revenues is pegged at $884.5 million, significantly up from the year-ago period. Intuit shares have gained 20.8% over the past month. The Zacks Computer Software Market industry has risen 22.6%, while the S&P 500 has gained 3.7% for the same period. Tax preparation and financial services provider like H&R Block (HRB) and fintech like Block (XYZ) continue to expand their tax-preparation, small-business and financial-service offerings, intensifying competition for Intuit across areas such as consumer tax, payments and broader financial management. HRB shares rallied 26.9%, while XYZ shares have gained 1.2% over the same timeframe. Image Source: Zacks Investment Research From a valuation standpoint, even after the stock’s recent rally, INTU shares are trading cheaply in terms of forward 12-month P/E. INTU stock is trading at 13.39X compared with the Zacks Computer Software Market industry’s 22.86X. Image Source: Zacks Investment Research Shares of HRB and XYZ are currently trading at P/E of 8.9X and 17.4X, respectively. Image Source: Zacks Investment Research Intuit continues to strengthen its position as a broad financial technology platform by integrating QuickBooks, TurboTax, Credit Karma and its expanding AI-powered services. Continued momentum in online accounting, payments, payroll, assisted tax offerings and consumer finance is likely to support long-term growth, while its AI-driven expert platform could deepen customer engagement across both consumer and small-business markets. However, competitive pressure, softer tax-unit trends, restructuring-related disruption and broader macroeconomic uncertainty remain key risks. Given these growth opportunities alongside near-term execution risks, the stock is best viewed as a hold at present. Long-term investors may prefer to wait for greater clarity on fiscal 2027 growth, margin improvement and the benefits of Intuit’s restructuring before adding to positions. 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 Intuit Inc. (INTU) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report Block, Inc. (XYZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. H&R Block stock has delivered a strong 148.4% return over the past 5 years, yet its current valuation checks still suggest the shares lean toward being undervalued rather than stretched. Over 5 years, H&R Block has returned 148.4%, which indicates that long term holders have already seen substantial value created. Recent revenue growth and solid operating cash flow, together with ongoing cash returns to shareholders, may support confidence in the company, while expectations for higher adjusted earnings per share could be tested if operating conditions become less favourable. On Simply Wall St's broader valuation checks, H&R Block screens as undervalued in 5 of 6 areas. This points to a stock that still looks cheap across several key metrics even after its multi year run 5. The issue now is whether the recent gains already reflect this valuation support or if H&R Block still offers a margin of safety at today’s price. H&R Block delivered 7.8% returns over the last year. See how this stacks up to the rest of the Consumer Services industry. P/E suits H&R Block because earnings remain a key anchor for how investors value the stock. On this measure, H&R Block trades on a P/E of 8.9x. That sits below the Consumer Services industry average of about 13.5x and is also below the broader peer average of 20.8x. The tailored fair P/E ratio for H&R Block is 17.1x, which reflects what might be expected given its business profile, margins and risk factors. The current 8.9x level is therefore well under that fair ratio. Even with the recent fiscal 2026 update highlighting revenue growth and strong cash generation, the market earnings multiple still prices the stock at a discount to both industry and peer benchmarks. On the P/E multiple, H&R Block stock appears undervalued compared with what the model implies as a fair earnings-based ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the H&R Block valuation puzzle leaves off by spelling out which assumptions about future growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price, and they sit on the company’s Community page. Each one treats H&R Block’s fair value as a thesis about the business that can be tracked over time, rather than a one off snapshot. One of the top community narratives on H&R Block: 61% overvalued Read one of the top narratives on H&R Block Do you think there's more to the story for H&R Block? Head over to our Community to see what others are saying! For H&R Block, the P/E based checks still lean toward an undervalued verdict relative to both its tailored fair ratio and industry peers. The core question now is whether that discount reflects lasting concerns about how assisted tax preparation will hold up as automation and artificial intelligence improve, or whether it offers a cushion if earnings remain resilient. The debate from here turns on that single assumption, since it will decide whether the current multiple tightens toward peers or stays low as a warning that the market sees a value trap forming. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HRB. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

As Intuit Inc. INTU prepares to report fourth-quarter fiscal 2026 results, investors will closely watch performance across TurboTax, Credit Karma and Global Business Solutions, which remain key growth drivers for the financial technology company. In the third quarter, Consumer revenues increased 8% to $5.3 billion. TurboTax revenues rose 7% to $4.4 billion, supported by growing adoption of assisted tax solutions. Intuit expects TurboTax Live revenues to improve 36% to about $2.8 billion for fiscal 2026, while TurboTax Live customers are projected to grow 38%. The offering is expected to account for roughly 53% of total TurboTax revenues. Higher-value customers and increased use of assisted offerings are also expected to drive an approximately 11% increase in TurboTax Online ARPU. Credit Karma revenues advanced 15% to $631 million in the third quarter, benefiting from strength in personal loans, auto insurance and home loans. Management expects Credit Karma revenues to grow approximately 19% for fiscal 2026. Global Business Solutions also remains an important growth driver. Revenues increased 15% in the third quarter, while Online Ecosystem revenues grew 19%. QuickBooks Online Accounting revenues climbed 22%, and total online payment volume, including Bill Pay, surged 30%. For fiscal 2026, Intuit expects Global Business Solutions revenues to jump approximately 16%. For the fourth quarter, Intuit anticipates total revenue growth of 11%-12% and non-GAAP earnings of $3.56-$3.62 per share. The Zacks Consensus Estimate for revenues is pegged at $4.27 billion, and for earnings, estimates stand at $3.59 per share, making sustained momentum across Credit Karma, TurboTax and QuickBooks a key focus. H&R Block HRB reported fiscal 2026 results with revenues increasing 4.9% to $3.95 billion, while adjusted EPS rose 13.9% to $5.31. Growth was supported by higher pricing and volumes in U.S. assisted tax preparation, international growth, and higher Wave subscription revenues and payments volume. Paychex PAYX reported fourth-quarter fiscal 2026 results with quarterly revenues increasing 12% to $1.61 billion, while adjusted EPS grew 11% to $1.32. Management Solutions revenues rose 14%, aided by Paycor, higher product penetration and increased revenue per client. Shares of Intuit have rallied 18.1% over the past three months, outperforming the broader industry and the S&P 500 composite. Image Source: Zacks Investment Research In terms of forward 12-month Price/Sales (P/S), Intuit is currently trading at 4.14X, which is at a discount to the industry average of 6.11X. Image Source: Zacks Investment Research Intuit’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for fiscal 2026 EPS has been revised downward by a cent to $23.85 over the past month. The consensus estimate for 2026 calls for 18.4% growth year over year. Image Source: Zacks Investment Research Currently, Intuit carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 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 Intuit Inc. (INTU) : Free Stock Analysis Report Paychex, Inc. (PAYX) : Free Stock Analysis Report H&R Block, Inc. (HRB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

H&R Block’s second quarter outperformed market expectations, led by improvements in both client retention and conversion rates. Management credited these results to a deliberate focus on higher-value, more complex clients and the expansion of technology-driven solutions across assisted and DIY tax preparation. CEO Curtis Campbell highlighted that automation and AI-powered enhancements reduced friction in the client journey, stating, “Conversion improved 200 basis points this season, which we believe is the largest single year improvement in our recorded history.” Enhanced retention, particularly for clients using the Second Look service, further strengthened the company’s competitive position in its core assisted business. Is now the time to buy HRB? Find out in our full research report (it’s free). Revenue: $1.14 billion vs analyst estimates of $1.12 billion (3% year-on-year growth, 2.5% beat) Adjusted EPS: $2.38 vs analyst estimates of $2.21 (7.7% beat) Adjusted EBITDA: $420.5 million vs analyst estimates of $394.6 million (36.7% margin, 6.6% beat) Adjusted EPS guidance for the upcoming financial year 2027 is $6.14 at the midpoint, beating analyst estimates by 4.8% EBITDA guidance for the upcoming financial year 2027 is $1.13 billion at the midpoint, above analyst estimates of $1.07 billion Operating Margin: 32.9%, in line with the same quarter last year Market Capitalization: $6.18 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Scott Schneeberger (Oppenheimer & Co.) asked about the sustainability of recent improvements in conversion and retention. CEO Curtis Campbell explained these were the result of moving toward a consultative, trust-based client approach and described ongoing phases to extend these gains. George Tong (Goldman Sachs) inquired about H&R Block’s outlook for the DIY category and investment priorities. Campbell emphasized focus on higher-value DIY clients rather than volume, while CFO Tiffany Mason highlighted investments in labor, training, and technology for both consultative models and small business services. Thomas Wendler (Stephens Inc.) sought details on utilization and impact of the Second Look service. Campbell described automation-driven expansion of Second Look, which improved retention for new clients and increased overall participation. Kartik Mehta (Northcoast Research) asked about pricing strategies and the number of experiments to be implemented next year. Mason noted plans for continued low single-digit price increases, and Campbell said the pace of real-world testing and scaling of successful pilots will accelerate. Alexander Paris (Barrington Research) questioned assumptions behind industry growth and margin guidance. Mason clarified that while industry growth is expected to moderate due to slower job creation, H&R Block’s strategic initiatives and franchise acquisitions underpin margin expansion and guidance assumptions. Our analyst team will be watching (1) the rollout and client adoption rates of advisory-focused service pilots in new markets, (2) the impact of further automation and AI integration on both client satisfaction and tax professional productivity, and (3) execution of small business growth initiatives, including integration of the Wave platform. Continued progress in shifting the client mix and maintaining pricing discipline will also be key markers of success. H&R Block currently trades at $50.55, up from $46.67 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

H&R Block, Inc. HRB reported impressive fourth-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. HRB’s adjusted earnings of $2.38 per share topped the Zacks Consensus Estimate of $2.23 by 6.7% and increased 4.8% year over year. H&R Block, Inc. price-consensus-eps-surprise-chart | H&R Block, Inc. Quote Revenues of $1.14 billion surpassed the consensus mark of $1.12 billion by 2.5% and rose 3% year over year. Assisted tax preparation and Wave contributed to growth. During fiscal 2026, client conversion improved 200 basis points, while retention increased 190 basis points. The better-than-expected results and strong fiscal 2027 guidance impressed investors, as the stock has gained 14.3% since the company released results on Aug. 11. HRB expects its fiscal 2027 revenues to be between $4.11 billion and $4.16 billion. The Zacks Consensus Estimate for the same is pegged at $4.03 billion. The company has guided its adjusted earnings in the range of $6.04 to $6.24 per share. The consensus estimate for the same is $5.81 per share. HRB’s shares have risen 6.4% over the past year against the industry’s 13.7% dip. The Zacks S&P 500 composite has risen 22.3% over the same time frame. U.S. tax preparation and related services revenues increased 2.8% year over year to $1 billion in the fiscal fourth quarter. Assisted tax preparation revenues rose 4.1% to $714.2 million, while Refund Transfer revenues advanced 6.4% to $23.7 million. Tax Identity Shield revenues increased 15.8% to $17.3 million. The company maintained Assisted category market share during the 2026 tax season after two consecutive years of improvement. Company-owned tax returns increased 2% for fiscal 2026, while net average charge at company-owned operations rose 4% to $282.89. Management attributed stronger performance to improved conversion, retention and a shift toward more complex clients. International revenues increased 5.6% year over year to $94.9 million in the quarter. Wave revenues climbed 12.3% to $33.2 million, continuing momentum in the company's small-business offering. For fiscal 2026, Wave posted its second consecutive year of double-digit revenue growth, supported by paid ProTier subscriptions and higher payments volume. Management continues to view small-business services as an important growth opportunity as it integrates expert advice, products and digital capabilities. Fiscal fourth-quarter operating expenses increased 3.8% year over year to $768.1 million. Compensation and benefits rose to $396.8 million from $383.1 million, while occupancy costs increased to $117.5 million from $112.8 million. Marketing and advertising expenses advanced to $69.1 million. EBITDA increased 1.8% to $420.5 million. Adjusted net income declined 1.6% to $304.2 million, but adjusted earnings per share rose as the weighted-average share count fell 6.3% to 127 million. The reduction reflects H&R Block's continued share repurchases. Management highlighted continued improvement in the quality of its client base. The share of clients within its targeted household adjusted gross income range of $50,000-$200,000 has increased from 38% to 50% over the past few years. H&R Block is serving more clients with investment income, small-business needs and more complex income streams. Technology remained central to the strategy. Artificial Intelligence Tax Assist handled 4.2 million client interactions during the season and generated nearly twice the engagement of the prior year. Client Experience Monitors contributed to a 550-basis-point increase in product attachment, while the company's Sidekick AI assistant supported tax professionals handling complex questions. H&R Block generated $838.7 million of operating cash flow in fiscal 2026 and $756.1 million of free cash flow. It returned $713.7 million to shareholders through dividends and share repurchases, including $500.3 million spent to repurchase about 10.5 million shares. The board raised the quarterly dividend by 10% to 46 cents per share. For fiscal 2027, adjusted EBITDA is projected in the range of $1.11 billion to $1.14 billion. The effective tax rate is forecasted at roughly 23%. HRB expects about $400 million of share repurchases in fiscal 2027 and has approximately $600 million remaining under its current $1.5 billion authorization. Management expects industry growth to remain below the historical norm but sees opportunities from Assisted market-share performance, small-business growth and selective franchise acquisitions. The company plans greater investment in automation and its consultative client experience while maintaining cost discipline. Currently, H&R Block carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Clean Harbors, Inc. CLH posted better-than-expected second-quarter 2026 results. CLH’s adjusted earnings of $3.22 per share beat the Zacks Consensus Estimate by 17.5% and rose 36.4% year over year. Total revenues of $1.74 billion surpassed the consensus estimate by 6.8% and increased 12% from the year-ago quarter. Rollins, Inc. ROL posted unimpressive second-quarter 2026 results. ROL’s adjusted earnings of 32 cents per share missed the Zacks Consensus Estimate by 5.9% but rose 6.7% year over year. Total revenues of $1.08 billion fell short of the consensus estimate by 1.7% but increased 7.9% from the year-ago quarter. 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 Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Rollins, Inc. (ROL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

H&R Block (HRB) rose about 16% on Wednesday, Aug. 12, after reporting fiscal 2026 fourth-quarter results that beat Wall Street expectations. Adjusted EPS came in at $2.38, above the $2.21 consensus estimate, while revenue increased to $1.14 billion from $1.11 billion a year earlier. H&R Block also issued fiscal 2027 guidance that exceeded analysts’ expectations. The company raised its quarterly dividend by 10% to $0.46 per share, extending its streak of annual dividend increases to nine years. H&R Block previously declared a $0.42 quarterly dividend in February 2026. Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Since 2016, the company says it has raised its dividend by 110% and returned more than $5 billion to shareholders through dividends and stock buybacks. The rally also pushed H&R Block to a new 52-week high. H&R Block has long been seen as a seasonal tax-preparation stock. But with its latest earnings, stronger guidance, and higher dividend, could the stock offer more than just a tax-season trade? Let’s find out. H&R Block makes money through its company-owned and franchised tax offices, do-it-yourself tax software, and its Wave platform for small businesses. The stock is up 8% over the past 52 weeks and 23% so far this year. Despite that gain, H&R Block still trades at 8.12x forward earnings, about half the 16.22x average for the consumer discretionary sector. H&R Block also raised its quarterly dividend by 10% to $0.46 per share. The dividend will be paid on Oct. 6 to shareholders of record on Sept. 3. It is the company’s ninth straight annual dividend increase and brings the annual payout to $1.84 per share. Before the increase, H&R Block paid $0.42 each quarter, or $1.68 annually, for a 3.10% yield. That is above the sector average yield of 1.89%, while the forward payout ratio stands at 30.37%. H&R Block finished fiscal 2026 on a strong note. Adjusted EPS came in at $2.38, beating estimates by $0.17, while Q4 revenue rose 3.1% to $1.145 billion. Full-year revenue increased 4.9% to $3.95 billion, adjusted EBITDA rose 8.3% to $1.06 billion, and adjusted EPS grew 13.9% to $5.31. Operating expenses rose 3.6% to about $3.0 billion, helping EBITDA margin improve by 80 basis points. Net income from continuing operations climbed 20.8% to $736.3 million, though that included an $84.1 million one-time IRS tax benefit worth $0.65 per share. Adjusted net income, excluding that item, rose 6.9% to $688 million. H&R Block repurchased 10.5 million shares for $500.3 million and returned $713.7 million to shareholders. It still has about $600 million available for further buybacks. For fiscal 2027, H&R Block expects revenue of $4.11 billion to $4.16 billion, adjusted EBITDA of $1.11 billion to $1.14 billion, and adjusted EPS of $6.04 to $6.24. H&R Block is using AI tools to help its tax professionals work faster and support clients more easily. Its Sidekick assistant, built with OpenAI, gives tax pros answers based on H&R Block’s Tax Institute information in two to three seconds during appointments. Its AI Tax Assist tool has handled 6.45 million client messages since launching in 2023, with usage up 152%. During the 2026 tax season, clients sent 1.91 million messages, up 85% from a year earlier, and received answers in an average of 2.2 seconds. H&R Block also added the tool to its Desktop Software for the first time. CNET named the platform Best Overall Tax Service and Best Use of AI for 2026. H&R Block is also buying back more franchises and turning them into company-owned offices. It completed 160 franchise buybacks in fiscal 2026, up from 124 a year earlier, spending about $58 million versus $36 million. The company expects to complete another 100 to 125 franchise acquisitions in fiscal 2027. These deals often happen when franchise owners do not have succession plans, allowing H&R Block to take over the offices and keep more of the revenue. Management expects this strategy to add about 1 percentage point to annual growth. In Canada, H&R Block partnered with Affirm (AFRM) to let clients pay for professional tax services in interest-free installments. It is the first major Canadian tax-preparation provider to offer this option. H&R Block is set to report its September 2026-quarter results on Nov. 5. Analysts expect a loss of $1.28 per share, compared with a $1.20 loss in the same quarter last year. That would be a 6.67% year-over-year (YoY) decline. For the fiscal year ending in June 2027, analysts expect H&R Block to earn $6.14 per share. That would be 15.63% higher than its fiscal 2026 adjusted EPS of $5.31. It also falls right at the middle of management’s $6.04 to $6.24 guidance range. Wall Street remains divided on HRB stock. Barrington Research raised its price target to $60 from $50 and kept its “Outperform” rating, pointing to about 11.7% upside from the prior closing price. Goldman Sachs kept a “Sell” rating and a $33 target, while Stephens started coverage on July 28 with an “Equal Weight” rating and a $47 target. Overall, the six analysts covering HRB stock rate it a consensus “Hold.” Their average target price is $43.75, which is 17% below the current share price of $52.80. H&R Block’s earnings beat, stronger fiscal 2027 outlook, rising dividend, and continued buybacks make the investment case more compelling than it was before the report. The company is pairing steady tax-preparation demand with AI tools, franchise acquisitions, and disciplined capital returns, while its forward valuation remains modest. Still, the 16% post-earnings rally has pushed HRB above Wall Street’s average target, so near-term upside may be limited after the surge. Shares are most likely to consolidate near current levels, but sustained delivery on the $6.04 to $6.24 fiscal 2027 EPS outlook could support a further move higher over time. On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com