A consumer tax-services company with compelling valuation metrics (forward P/E of 6.2x, PEG of 0.51), 19% net margins, and a recent three-quarter earnings beat streak is offset by a confirmed price downtrend declining at 5.3% per month, 23% short interest, and two high-severity counterparty concentration risks — the setup offers roughly 7% return to the next resistance level but lacks the technical catalyst needed to close that gap near-term.
Thesis pillars
- Compelling Earnings Growth Value→Stable
- High Margin Quality Business→Stable
- Three Quarter Earnings Beat Streak↑Improving
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed Aug 14, 2026
H&R Block, Inc. (HRB) Stock Analysis
Breakout setup · Catalyst-Driven edge
Consumer Cyclical · Personal Services
Sell if holding. Analyst target reached at $47.80 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Consumer Cyclical): -1.5.
H&R Block provides assisted and do-it-yourself tax preparation, financial products and small business services, primarily in the U.S., Canada and Australia, via company-owned and franchise offices, virtual service, online and mobile software. In fiscal 2026 it prepared 11.3... Read more
Sell if holding. Analyst target reached at $47.80 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Consumer Cyclical): -1.5. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Score 5.8/10, high confidence.
Passes 5/8 gates (positive momentum, clean insider activity, no SEC red flags, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
About H&R Block, Inc.
About H&R Block, Inc.
H&R Block reported fiscal 2026 consolidated revenues of $3.95 billion, net income from continuing operations of $736.3 million, and EBITDA from continuing operations of $1.06 billion. The company prepared 11.3 million U.S. assisted tax returns and its clients filed 3.6 million DIY online paid returns, and 22.3 million returns were filed by or through H&R Block across the U.S., Canada, and Australia.
H&R Block reports a single segment covering assisted and DIY tax preparation, delivered in person, virtually, online, on mobile apps, and through desktop software. Assisted returns are prepared in company-owned or franchise offices, and in the U.S. franchisees pay approximately 30% of gross tax return preparation and related service revenues as a royalty. The company layers financial products on the tax relationship: Refund Transfers, interest-free Refund Advance loans offered through a bank partner in amounts of $250 to $4,000 in tax season 2026, Emerald Card prepaid debit cards, and the Spruce mobile banking app. Block Advisors and Wave serve small-business owners with bookkeeping, payroll, advisory, and payment processing. Capital returns in fiscal 2026 included repurchases of 10.5 million shares and dividends of $1.68 per share, up 12.0%. Both assisted and DIY returns carry a 100% accuracy guarantee, and DIY clients get access to the AI Tax Assist tool and human help at no added charge.
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Vendor dependence and seasonality combine in the risk profile. The 10-K says the company contracts with a single vendor or a limited number of vendors for key services, naming Fidelity National Information Services for data processing and card production, Pathward for issuing Refund Transfers, Refund Advances, Emerald Cards, and Spruce accounts, and Microsoft for enterprise technology. The filing says its sensitivity to vendor problems may be heightened by seasonality, since the substantial portion of revenue is earned from February through April and the company generally operates at a loss for the rest of the year, which means a vendor outage in that window could affect a large share of annual results.
See also: Consumer Cyclical · Personal Services
From H&R Block, Inc.'s most recent 10-K filing, extracted October 18, 2026.
Recent developments
updated 2026-10-29Recent Developments — H&R Block, Inc.
Latest news
- NEWS H&R Block Officer Mark J. Darling Files Form 144 for Proposed Sale of 2,700 Shares - Kalkine Media — Kalkine Media neutral
- NEWS H&R Block Officer Mark J. Darling Files Form 144 for Proposed Sale of 2,700 Shares - kalkinemedia.com — kalkinemedia.com neutral
- NEWS H&R Block (NYSE:HRB) Stock Crosses Above 200-Day Moving Average - What's Next? - MarketBeat — MarketBeat positive
- NEWS H&R Block (HRB) Shares Skyrocket, What You Need To Know - Yahoo Finance UK — Yahoo Finance UK positive
- NEWS Does H&R Block's (HRB) New Analyst Coverage Reframe Its Defensive Profile or Just Confirm Consensus? - Sahm — Sahm neutral
Generated 2026-10-29T11:53:51Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Growth below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $47.80 — A.R:R is negative (-0.6) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Sector modifier (Consumer Cyclical): -1.5. Chart setup: Golden cross, above all MAs, RSI 61, MACD bullish. Prior stop was $44.48. Score 5.8/10, high confidence.
Analyst target $43.92 reached (−8.1% from $47.80); no take-profit level is published. Prior stop was $44.48. Stop-loss: $44.48.
Analyst target reached - limited upside remaining; Sector modifier (Consumer Cyclical): -1.5; Leverage penalty (D/E 17.9): -1.5.
H&R Block, Inc. trades at a P/E of 8.4 (forward 6.9). TrendMatrix value score: 8.1/10. Verdict: Sell.
12 analysts cover HRB with a consensus score of 2.6/5. Average price target: $52.
What does H&R Block, Inc. do?H&R Block provides assisted and do-it-yourself tax preparation, financial products and small business services,...
H&R Block provides assisted and do-it-yourself tax preparation, financial products and small business services, primarily in the U.S., Canada and Australia, via company-owned and franchise offices, virtual service, online and mobile software. In fiscal 2026 it prepared 11.3 million U.S. assisted returns, with 3.6 million paid DIY returns, on $3.95 billion of revenue. Franchisees pay about 30% of gross preparation revenue as royalty.