H&R Block Inc. (HRB) shares are trading at lower $18.40 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $17.57.
To add more color to this target, the company’s high over the last year is $25.44 and the low is $11.29. Over the last 52 weeks, HRB is down -26.02% while the S&P 500 is up 15.12%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, HRB reported a profit of $285.99 million. H&R Block Inc. also saw revenues increase to $601.03 million. In addition, HRB has free cash flow of -$28.81 million as of 07-2020. The company’s EBITDA came in at $192.46 million which compares well with its peers.
HRB booked profit margins of 7.50%, its Return on Equity (ROE) is -496.60%, and its Return on Assets is 5.70%. All told, it is clear that, HRB needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. HRB has a short ratio of 4.72 and outstanding shares of 192.60M.
HRB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 2.77 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.30. H&R Block Inc. HRB also noted assets of $5.0 billion at the end of the last quarter. Investors should also keep an eye on sector updates as HRB has historically followed its peers on positive news.
All told, H&R Block Inc. HRB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, HRB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
H&R Block Inc. HRB is now commanding a market cap of 3.56B and a float of 191.73M. HRB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of HRB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in HRB, either long or short, and we have not been compensated for this article.