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HRB · NASDAQ · STOCK

H&R Block

Consumer Cyclical Updated August 09, 2026
$46.16
52W $28.16 – $55.95
58/100
$5.86B
8.2
0.35
AI Committee Verdict
Buy
58/100
Conviction: Contested · 50% agreement · 6 analysts
+5.6%
-0.6%
9.30:1
Contested

Is HRB Bullish or Bearish?

Bullish. Innellis AI committee rates H&R Block (HRB) Buy with a composite score of 58/100 , based on 6 analysts with 50% agreement. Last updated August 09, 2026.

What Would Change This View

Upgrade to Strong Buy
Requires a committee score of 75.0 — +16.64 from today. Applies on the first day at or above the line; upgrades are never dampened.
Downgrade to Watch
Requires the score to fall below 55.0 — -3.36 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.

Executive Summary

The committee is genuinely divided. Growth Analyst sees a compelling case — eps growing 37.6% yoy. Risk Analyst remains cautious — high leverage (debt-to-equity 16.80) amplifies downside in a stress scenario. This disagreement is itself the signal — the setup is not clean in either direction.

Bull & Bear Case

Bull Case
  • P/E of 7.9 is inexpensive for the broad market — Value
  • ROE of 336.8% shows genuine earnings power backing the valuation — Value
  • Dividend yield of 3.7% pays you to wait — Value
  • EPS growing 37.6% YoY — Growth
  • 3 consecutive earnings beats -- consistent execution — Growth
  • Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
Bear Case
  • Price-to-book of 82.7x prices in significant intangible value — Value
  • Debt-to-equity of 16.80 adds balance-sheet risk to the value case — Value
  • Weekly RSI at 75 -- overbought on the larger timeframe too — Technical
  • High leverage (debt-to-equity 16.80) amplifies downside in a stress scenario — Risk
  • Current ratio of 0.90 is tight -- limited short-term liquidity cushion — Risk
  • Bollinger bandwidth of 22.8% signals elevated volatility — Risk
Both cases are generated from quantitative data signals, not qualitative or forward-looking judgement. They summarise what the numbers say today.
Price History (6M)

AI Investment Committee

Committee Consensus As of August 09, 2026
Overall Committee Score
58/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 48%
of 124 Consumer Cyclical peers
Value Analyst neutral
55 / 100 · High confidence
Fair value -- neither a bargain nor obviously overpriced
+ P/E of 7.9 is inexpensive for the broad market
− Price-to-book of 82.7x prices in significant intangible value
Growth Analyst bullish
72 / 100 · High confidence
Strong, accelerating growth with consistent execution
+ EPS growing 37.6% YoY
Technical Analyst bullish
68 / 100 · High confidence
Price action is constructive -- trend and momentum agree
+ Price structure making higher highs and higher lows
− Weekly RSI at 75 -- overbought on the larger timeframe too
Risk Analyst bearish
33 / 100 · Moderate confidence
Elevated risk from leverage, volatility, event exposure, or portfolio concentration -- size accordingly
− High leverage (debt-to-equity 16.80) amplifies downside in a stress scenario
Macro Analyst bullish
70 / 100 · Moderate confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
+ Market regime is bullish (Bull market -- normal position sizing)
News Analyst neutral
51 / 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
− News sentiment is negative (-0.20 across 17 articles, 14d)
Portfolio Manager neutral
55 / 100 · Moderate confidence
Portfolio-level factors are mixed -- worth a deliberate sizing decision, not a default-size position
+ Portfolio position concentration is currently healthy
− 4 existing position pair(s) are highly correlated already
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Investment Thesis Evolution

Committee score moved marginally from 58.4 to 58.4.

Comparing 2026-08-08 to 2026-08-09 (1 day apart).

Technical Analysis

RSI (14)
67.8
Neutral
MACD Histogram
0.212
Bullish Momentum
Trend Direction
Uptrend
Weekly: Sideways
Market Structure
Hh Hl
Support
$45.89
Resistance
$48.74
Bollinger %B
0.81
Inside Bands
Price vs Moving Averages
EMA 9
$45.06 Above
EMA 21
$43.22 Above
EMA 50
$40.49 Above
EMA 200
$40.08 Above

Fundamental Analysis

Valuation
100
Growth
79
Profitability
95
Financial Health
58
Cash Flow
70
Valuation
P/E Ratio 8.2×
P/B Ratio
PEG Ratio 0.24
Dividend Yield 3.64%
52W High $55.95
52W Low $28.16
Quality & Growth
ROE
ROA 1856.0%
Gross Margin 5448.0%
Operating Margin 2618.1%
Revenue Growth YoY
Debt / Equity
AI Fundamental Assessment
P/E ratio of 8.2 (inexpensive relative to a 15-40x range); Price-to-book of -245.4x; PEG ratio of 0.2 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 681.4%; Return on assets of 18.6%; Net margin of 18.9%; Gross margin of 54.5%; Current ratio of 1.00 (tight short-term liquidity); Debt-to-equity of -83.12; Free cash flow per share is positive (5.88); Most recent quarter beat estimates by 3.3%; 3 consecutive earnings beats; EPS growth accelerating (-53.3% -> +427.2% QoQ); Analyst estimates rising over recent quarters
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Explore HRB Further

📈 Rating History 💰 Earnings 📰 Recent Events 🔄 What Changed 📖 Thesis Evolution 🔍 Similar Stocks
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