H&R Block: Buy Interest Could Signal Buy Opportunity

With the New Year and the 2008 Tax Season right around the corner, H&R Block (HRB) is experiencing some buying interest which could translate into a buying opportunity. This past week, the 13 day moving average (MA) crossed the 50 day MA for the stock, indicating a technical break upward. The company has a decent dividend and has run from April Until July for the last four years.

13 Day MA Crosses the 50 Day MA

From a technical standpoint, the stock for H&R Block has recently broken to the upside, which could continue to run with improved fundamentals, the tax season approaching, and the overall market looking to make a similar technical buy signal. The stock has moved from $17.43 a share to $21.03 a share over the past month. Analysts aren’t looking for much in earnings improvements but see the company’s profitability remaining the same over the remainder of the year and next year.

Decent Dividend

H&R Block is currently paying 2.9% a share in a yearly dividend yield. With a Beta rate of only 0.91, the stock is fairly stable and is in fact up 14.79% over the past 52 weeks.

Seasonal Run Four Years

Beginning in 2005, the period from the end of April to the company’s earnings announcement in July, the stock has rallied four consecutive years. If the economy is recovering well in May of 2009 and the earnings estimates are increasing looking forward at that time, HRB would be a stock to look at for placing some of the funds of your portfolio into.

In addition to the tax season, it has now become a practical present for a parent or a spouse to give the companies new tax software for a Christmas present. This additional source of revenue has improved the company’s revenue streams and earnings over the past several years.

Disclosure: no positions