Please ensure Javascript is enabled for purposes of website accessibility

Why H&R Block Is Poised to Pull Back

By Brian D. Pacampara, CFA - Apr 4, 2013 at 7:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Market-lagging returns could be written in this 2-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tax prep specialist H&R Block (HRB -0.21%) has received a distressing two-star ranking.

With that in mind, let's take a closer look at H&R Block, and see what CAPS investors are saying about the stock right now.

H&R Block facts

  

Headquarters (founded)

Kansas City, Mo. (1946)

Market Cap

$7.8 billion

Industry

Personal services

Trailing-12-Month Revenue

$2.6 billion

Management

CEO William Cobb (since 2011)

CFO Gregory Macfarlane (since 2012)

Return on Equity (average, past 3 years)

49.9%

Cash/Debt

$418.4 million / $1.3 billion

Competitors

Intuit

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 34% of the 542 members who have rated H&R Block believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, ayekappy, highlighted H&R Block as a rather untimely opportunity:

Horrible company with a failing business model. Probably won't be getting new customers and will lose a lot of existing customers due to their famous error and essentially lying about what % of people got their returns back already. They may have to hide under TaxAct to make people forget about their stained name. Next quarter's numbers should be pretty ugly compared to normal since the glitch was heard about earlier in the tax season, so they already started bleeding customers this tax season.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

H&R Block, Inc. Stock Quote
H&R Block, Inc.
HRB
$33.01 (-0.21%) $0.07

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
330%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/23/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.