cyano66/iStock via Getty Images
With a U.S. recession looming in 2023, investors hoping to find a safe place to park their capital should look for safe harbor in "boring companies."
Companies that will survive no matter what the economy throws
H&R Block: Put This Recession-Resistant Stock On Your Balance Sheet
Summary
- This article seeks to provide a valuation and pricing mechanism for H&R Block, Inc.
- We find a pricing mechanism for H&R Block by comparing its financial metrics to the rest of the U.S. market, assessing its financial health, and attempting to find a valuation.
- I give H&R Block an overall financial health score of 89.38%, and a 49.72% current price attractiveness score relative to the peer comparison group.
- H&R Block is a well-established player in the tax preparation industry in the U.S., a recession-resistant industry, with healthy liquidity ratio, high margins, and a good coverage ratio.
Articles for readers seeking easy-to-understand reasoning behind an investment recommendation. We prefer fundamental analysis over technical, and value firms based on performance to the sector, industry and peer group.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.
Author’s Note: The commentary in this article is general in nature and does not consider your personal circumstance. The opinions expressed in this article are opinions only, and data referenced is sourced from third party sources, including Seeking Alpha and other publicly available sources.
I make no warranties or guarantees around any of the views expressed in this article and suggest all investors consider my writing to be for interest purposes only and not considered exhaustive investment research or advice.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.