H&R Block (NYSE:HRB) remains a solid risk-adjusted choice, as we enter the heat of an extended tax season into May. With all the different government stimulus checks and unemployment relief efforts caused by the
H&R Block: Valuation And Momentum Trends Still Favor Bulls
Summary
- H&R Block remains a clear undervaluation investment choice despite a much rosier operating outlook with Democrats in control of Washington politics.
- A 5%+ dividend yield is well worth the price of admission, with a payout easily covered and likely to rise in the future.
- Improving momentum indicators the last six months are noteworthy and could indicate sellers understand the company is worth more.
Nationally ranked stock picker for 30 years. Victory Formation and Bottom Fishing Club quant-sort pioneer.....Paul Franke is a private investor and speculator with 39 years of trading experience. Mr. Franke was Editor and Publisher of the Maverick Investor® newsletter during the 1990s, widely quoted by CNBC®, Barron’s®, the Washington Post® and Investor’s Business Daily®. Paul was consistently ranked among top investment advisors nationally for stock market and commodity macro views by Timer Digest® during the 1990s. Mr. Franke was ranked #1 in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of 60,000+ portfolios. Mr. Franke was Director of Research at Quantemonics Investing® from 2010-13, running several model portfolios on the Covestor.com mirror platform (including the least volatile, lowest beta, fully-invested equity portfolio on the site). As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance on suggestions made over the last decade.A contrarian stock selection style, along with daily algorithm analysis of fundamental and technical data have been developed into a system for finding stocks, named the “Victory Formation.” Supply/demand imbalances signaled by specific stock price and volume movements are a critical part of this formula for success. Mr. Franke suggests investors use 10% or 20% stop-loss levels on individual choices and a diversified approach of owning at least 50 well positioned favorites to achieve regular stock market outperformance. "Bottom Fishing Club" articles focus on deep value candidates or stocks experiencing a major reversal in technical momentum to the upside. "Volume Breakout Report" articles discuss positive trend changes backed by strong price and volume trading action.
Analyst’s Disclosure:I am/we are long HRB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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