On Feb. 2, we highlighted opportunity in H&R Block (HRB) as it traded at $46.58.
At the time, we noted, “H&R Block is a non-brainer with tax season. Every year around this time, HRB rockets higher. We’ve seen it happen just about every year. Not only can you make money from its potential appreciation this time of year, but you can also collect its yield.”
Nowadays, HRB is up to $49.30 and could push higher as we approach Tax Day.
Analysts at Barrington recently raised its price target to $55 from $48 a share, with an outperform rating. According to TheFly.com, the firm cites the company’s current valuation, “secure” dividend yielding 2.7% and “aggressive” share repurchase program.
Even better, HRB earnings have been impressive.
In its most recent quarter, it posted an EPS loss of $1.27, which beat estimates by 29 cents. Revenue – up 7.6% year over year to $179.08 million – beat by $9.63 million.
“Our performance continues to meet expectations, and our capital allocation practice remains strong,” added Tony Bowen, H&R Block’s chief financial officer. “We feel good about our balance sheet and how we are positioned in the current environment, and I am confident in our ability to drive ongoing value for shareholders.”
