The Plus and the Minus Columns of H&R Block
Great reputation, but the stock isn't exactly on the discount rack right now.
Here's what I'm seeing this fine, but very crisp Wednesday morning:
H&R Block (HRB):
The Missouri-based tax-services company received a nice little goose in Tuesday's session. The reason: Barrington Research upped its rating to Outperform.
Personally, I like it, but I don't love it right now.
1. On the plus side of the column, its reputation is great, and I see solid demand for its services well into the future as the tax code seemingly becomes more of a head-scratcher.
2. On the other hand, the stock isn't on the discount rack right now. At right around 14 times this year's estimate, it's probably approaching a fair price. Also, data shows that the estimate for the current quarter is down a penny over the last month or so from $0.17 to $0.16. That's not horrible, just not exactly the way I'd like to see things headed. Not to mention the shares have had a pretty nice run since I last wrote back in June.
3. At the end of the day, I'd rather wait to see if the stock takes a breather at this point before pondering bellying up. That might improve my chance of better returns.
This was another standout in yesterday's session. The shares rose $0.53 as Global Hunter slapped a Buy rating on it.
1. I'm seeing a great deal of people rent movies from those machines located in front of my supermarket -- and I have been, too. There are good titles and it's convenient when you don't want to run all the way to Blockbuster (BBI) or go online for Netflix (NFLX).
2. The company is also coming off two better-than-expected quarters -- also an attractive feature.
3. But as a penny-pincher, I'm not willing to rent here at more than 28 times this year's estimate and at about 17.6 times the 2010 estimate.
What's cooking with the Pixi? There seemed to be some hand-wringing yesterday as the stock took a little slap on the wrist.
With not a heck of a lot expected on the earnings front, its chatter like this that has the potential to scare some fence-sitters and some that already have a nice profit in the stock off. Call me old-fashioned, but I want to see a bunch of numbers in the black before I consider bucking on up.
Have a great day and an even better New Year!
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter