Reasons Why Investors Should Retain H&R Block Stock for Now

H&R Block HRB has a Growth Score of A, which condenses key financial metrics to reflect a fair sense of the quality and sustainability of its growth.The company’s earnings are expected to increase 6% in 2025 and 7.9% in 2026 year over year, while revenues are expected to grow 3.3% in 2025 and 2.4% in 2026.Factors That Augur Well for HRBH&R Block’s revenue growth is being driven by higher volume in U.S. assisted tax preparation due to an increase in net average charge (NAC) and higher company-owned tax return volumes. Increased service fees resulted in the company generating $204 million in total revenues in the first quarter of fiscal 2026, representing 5% year-over-year growth. Its unique Second Look offering, which reviews a new client’s past three years' tax returns to identify any missed refund opportunities, is boosting customer relationships.H&R Block, Inc. Revenue (TTM) H&R Block, Inc. revenue-ttm | H&R Block, Inc. QuoteHRB’s mobile banking platform, Spruc, supports year-round financial wellness and plays a key role in elevating client experience. Since its launch on June 30, 2024, the platform has recorded around 476,000 sign-ups and held $1.75 billion in customer deposits by the end of fiscal 2025.The company’s integration of AI-powered technology into DIY (Do It Yourself) tax preparation tools like MyBlock, AI TaxAssist and TaxProReview enhances customer experience by assisting paid DIY online returns without extra charges.Key Risk FactorHRB reported a current ratio of 0.76, lower than the industry's average of 0.82 in the first quarter of fiscal 2026. A current ratio below 1 suggests that a company may not be well-positioned to meet its short-term obligations.Zacks Rank & Stocks to ConsiderH&R Block currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks hereA couple of better-ranked stocks in the broader Zacks Business Services sector are Genpact (G) and Palantir Technologies Inc. (PLTR).Genpact carries a Zacks Rank #2 (Buy) at present. G has a long-term earnings growth expectation of 9.6%. The company delivered a trailing four-quarter earnings surprise of 5.5% on average.Palantir Technologies also holds a Zacks Rank of 2 at present, with a long-term earnings growth expectation of 50%. The company beat earnings estimates in three of the last four quarters and matched once, with an earnings surprise of 16.3% on average.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Genpact Limited (G): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks