#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, through its subsidiaries, provides assisted income tax return preparation and do-it-yourself (DIY) tax return preparation services and products to the general public primarily in the United States, Canada, and Australia. It offers assisted income tax return preparation and related services through a system of retail offices operated directly by the company or its franchisees.
Read More - Current Price
- $58.30
- Consensus Rating
- Hold
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $57.00 (2.2% Downside)
