Image: Markets Daily
H&R Block (NYSE:HRB) has received an upgrade from Zacks Research. The firm raised its rating on the tax preparation company from "hold" to "strong-buy" in a research note on Monday, Zacks reports.
A "strong-buy" is the top rating in this system. It means Zacks Research now sees the stock as a very good choice for investors.
Zacks ratings are based mostly on changes in earnings estimates. When analysts expect a company to earn more money, the rating often goes up. Experts also expect H&R Block to post earnings of about $6.11 per share for the current fiscal year.
This is not the first time Zacks has moved on the stock. The firm also raised H&R Block to "strong-buy" in May, but later lowered it to "hold." Monday's move brings the rating back to the top level.
Wall Street opinions on H&R Block are mixed:
In total, one analyst rates the stock a strong buy, one rates it a buy, two rate it a hold, and one rates it a sell.
H&R Block shares opened at $42.66 on Monday. The company last reported its earnings on August 11. Over the past year, the stock has traded in a wide range, from a low of about $28 to a high of about $56.
Investors will likely watch how earnings estimates change in the coming weeks, because those changes drive Zacks ratings. The next earnings report will also show whether the company can keep growing in the busy tax business.
This article is for information only and is not financial advice. Analyst ratings are opinions and can be wrong.
For more coverage of this story, read the original report at MarketBeat.
