The extended deadline for filing federal income tax forms expired on May 17. And tax preparation giant H&R Block released preliminary results Monday, saying it saw strong growth in tax return volume this season. The company also said it increased its market share slightly, a turnaround after years of slow growth amid rising competition. On Monday, the Relative Strength (RS) Rating for H&R Block (HRB) climbed to 84, up from 80 the prior trading session.
“The story of tax season 2021 is growth. We achieved our largest market share gains in over a decade and saw significant growth in Do-it Yourself (DIY) revenue,” H&R Block CEO Jeff Jones said in a news release Monday.
Turnaround In Making For H&R Block?
The 84 RS Rating means Kansas City, Mo.-based H&R Block has outperformed 84% of all stocks, regardless of industry group, over the past year. Stocks that go on to make the biggest gains typically have an RS Rating of at least 80 in the early stages of their moves.
Among other key ratings, the tax preparation, accounting and business consulting firm has a middling 75 Composite Rating, of a best-possible 99. And it carries a weak 12 EPS Rating after a couple of quarters of non-tax season earnings drops. However, its A- Accumulation/Distribution Rating, on an A+ to E scale with A+ tops, shows that funds and other institutions are eagerly buying its stock.
The market wasn’t impressed with the company’s report though, and HRB stock was down nearly 5% Monday afternoon, to 24. 48. Still, its stock has roughly doubled since hitting a coronavirus market crash low of 12.76 on March 20, 2020.
In terms of fundamentals, H&R Block saw both sales and earnings drop on a year-over-year basis last quarter. The company says it will release full fiscal Q4 financial results on June 15 after the market closes.
Top Companies In Group
H&R Block holds the No. 26 rank among its peers in the Financial Services-Specialty industry group. 360 Digitech (QFIN) and Business First Bancshares (BFST) are among the group’s highest-rated stocks.
H&R Block is now considered extended and out of buy range after clearing a 19.46 buy point in a first-stage cup without handle. See if the stock forms a new pattern or follow-on buying opportunity like a three-weeks tight or pullback to the 50-day or 10-week moving average.
As you try to find the best stocks to buy and watch, be sure to pay attention to relative price strength.
IBD’s proprietary rating measures price performance with a 1 (worst) to 99 (best) score. The score shows how a stock’s price behavior over the trailing 52 weeks compares to all the other stocks in our database.
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