H&R Block: Solid Rock And Trading At A Discount

H&R Block delivered a strong quarter with 6% EBITDA growth and 5.3% revenue growth, defying AI disruption fears. HRB's assisted tax segment had its best performance in 3 years. Overall volume decline was primarily free filers; paid filers declined less than 1%. Expense management and potential divestiture of underperforming units like Wave, Block Advisors, and Spruce could further enhance HRB's outlook. H&R Block is about to execute a $400 million repurchase which could retire 9% of the float in the next 6 months. H&R Block could return back to the mid $50's or higher by the end of the year.

H&R Block ( HRB ) has had a tough year, although nothing compared to competitor Intuit ( INTU ). Both stocks have sold off hard due to AI fears, even though I believe that personal