#4 - H&R Block (NYSE:HRB)
About 30% of companies are using AI for accounting. However, it's likely that a significantly higher percentage of taxpayers are using AI for their tax preparation. It will be if they're using H&R Block Inc. (NYSE: HRB).
In December 2023, H&R Block launched its AI Tax Assist product, created in partnership with Microsoft Corporation (NASDAQ: MSFT). The goal was to use generative AI to elevate the customer experience, reduce expenses, and increase productivity.
Investors should pay attention to the company's third quarter 2024 earnings report coming in May for a first look at how customers respond to the AI product. Historically, the current and following quarters are when HRB makes most of its revenue and profit.
It may surprise investors to know that HRB stock has generated 95% share price growth over the last five years. That's in addition to a dividend that yields 2.72% and has a conservative payout ratio of just over 35%.
About H&R Block
H&R Block, Inc engages in the provision of tax return preparation solutions, financial products and small business solutions. The company was founded by Henry W. Bloch and Richard A. Bloch on January 25, 1955, and is headquartered in Kansas City, MO.
- Current Price
- $53.52
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $57.00 (6.5% Upside)
