For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #2 (Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.05; value investors should take notice.
For fiscal 2026, one analyst revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.06 to $5.18 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today July 6th:
Pitney Bowes (PBI - Free Report) : This global technology company, which is powering billions of transactions - physical and digital - in the connected and borderless world of commerce, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.6% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.75 compared with 0.80 for the industry. The company possesses a Growth Score of A.
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 10.3% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.21 compared with 1.40 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of HRB either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Joel Greenblatt’s Magic Formula ranks stocks on two factors: earnings yield (EBIT divided by enterprise value) and return on capital. It surfaces good companies trading at cheap prices.
For retirees, “cheap and high-quality” is only the starting point. Income reliability, drawdown control, and earnings predictability matter as much as a low multiple. Here is a look at how three Magic Formula candidates stack up, ranked from least to most appropriate for a retirement portfolio.
3. Peabody Energy Peabody Energy (NYSE: BTU | BTU Price Prediction) screens as the deep-value, optionality-rich name Greenblatt enthusiasts love. Shares closed most recently at $23.69, with a price-to-book ratio of 0.85 and a forward P/E near 22x. The one-year return of 83.8% reflects renewed enthusiasm for coal tied to AI data-center power demand.
The retirement case breaks down on consistency. Q1 FY26 produced an EPS of −$0.26 versus a $0.22 estimate, a −218% earnings surprise, after Centurion mine commissioning issues caused roughly $80 million of damage to the Seaborne Met segment. CEO Jim Grech cited “temporary equipment and roof control challenges.” The $0.075 quarterly dividend has held since Q3 2023. However, the historical record shows cuts from $0.145 to $0.115 during the 2018 downturn and losses from 2015 through 2020. Cyclical coal is a trade, rarely a retirement holding.
2. Molina Healthcare Molina Healthcare (NYSE: MOH) is the classic Magic Formula recovery setup. The managed-care operator trades at a forward P/E of 38x against trailing revenue of $43.1 billion. Shares rebounded 24.5% year to date to $216.04, though that still is 26.6% below year-ago levels.
Q4 2025 delivered an ugly adjusted EPS of −$2.75 against a $0.50 estimate, but Q1 2026 turned with reported EPS of $2.35 versus $1.91 expected, a 23.04% beat. CEO Joseph Zubretsky stated: “We believe that the imbalance between rates and trend marks 2026 as a trough year for Medicaid industry margins.” Management guides to at least $5.00 in adjusted EPS for 2026, burdened by Florida contract costs and MAPD underperformance, with embedded earnings above $11.00 by 2027 to 2029.
For retirees, the problem is income. Molina pays no dividend, regulatory risk on Medicaid rates is real, and operating cash flow turned negative $535 million in FY2025. It is a value bet on a regulated turnaround that offers no income while investors wait..
1. H&R Block H&R Block (NYSE: HRB) is the cleanest fit for the Magic Formula and retirement portfolios. The tax-prep franchise trades at a trailing P/E of 6x and forward P/E of 6x, with a return on equity of 67.9% and an operating margin of 43.2%. That combination of a low multiple and high capital returns is precisely what Greenblatt targets.
Q3 FY26 results were strong: adjusted diluted EPS of $6.02 beat the $5.77 estimate, revenue of $2.40 billion grew 5.31% year over year, and net income rose 17.51%. Management raised FY2026 guidance to adjusted EPS of $5.10 to $5.20 on roughly $3.91 billion to $3.92 billion in revenue. CEO Curtis Campbell called the quarter “an important inflection point” as the assisted channel gained share for a third consecutive year.
Capital return crystallizes the retirement thesis. The quarterly dividend stepped up to $0.42 from $0.375, extending a 60-year streak of consecutive quarterly dividends. The board added an additional $100 million buyback authorization on top of the roughly $700 million remaining under the existing $1.5 billion program. Year-to-date capital returns reached $560.9 million. The dividend held flat through both the 2008 crisis and the 2020 pandemic. With a beta of 0.37 and a 4.7% yield, the volatility profile matches what an income-focused investor needs, though seasonal revenue concentration and AI-native tax competition remain genuine risks.
Bringing the Formula Back to Retirement Greenblatt’s framework surfaces all three names as cheap businesses generating real returns on capital. The retirement filter separates them. Peabody is a commodity play masquerading as a value stock. Molina is a regulated turnaround with no income to collect during the wait. H&R Block pairs a high-margin, cash-generative franchise with the longest dividend history in this group and a management team that is actively shrinking the share count. For a retiree using the Magic Formula as a starting point, H&R Block stock survives the second screen.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 6.64; value investors should take notice.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.20 to $5.18 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Key Takeaways HRB posted Q3 adjusted EPS of $6.02, topping estimates by 5.8% and increasing 11.9% year over year.H&R Block reported $2.4 billion in revenues, up 5.3% y/y, led by tax preparation and Wave growth.HRB raised its fiscal 2026 EPS and revenue guidance above current consensus estimates. H&R Block Inc. (HRB - Free Report) reported impressive third-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
HRB’s adjusted earnings of $6.02 per share beat the Zacks Consensus Estimate by 5.8% and increased 11.9% year over year. Revenues of $2.4 billion topped the Zacks Consensus Estimate by 2.5% and rose 5.3% year over year.
Over the past year, HRB shares have declined 49.7% compared with the industry's 24.9% decline. The Zacks S&P 500 composite has gained 33.4% in the said time frame.
HRB’s Quarterly NumbersRevenues from U.S. tax preparation and related services were $2.2 billion, up 5.1% year over year. Revenues from Financial services totaled $54.8 million, marking a marginal year-over-year rise. International revenues of $70 million rose 16%, while Wave revenues jumped 11.8% to $29.9 million.
Key Balance Sheet & Cash Flow Figures of HRBH&R Block exited the quarter with cash and cash equivalents of $867 million. Long-term debt was $1.5 billion compared with $2.4 billion at the end of the second quarter of fiscal 2026. The company generated $1.5 billion of cash in operating activities, while capital expenditures totaled $18.4 million.
Fiscal 2026 Guidance of HRBHRB guided adjusted earnings in the range of $5.10-$5.20 per share for fiscal 2026. The current Zacks Consensus Estimate for the same is $4.98.
Revenues are expected to be between $3.910 billion and $3.920 billion. The consensus estimate for the same stands at $3.89 billion.
The company guided EBITDA between $1.025 billion and $1.035 billion and an effective tax rate of 14%.
Currently, H&R Block carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings SnapshotsEquifax Inc. (EFX - Free Report) reported better-than-expected first-quarter 2026 results. EFX’s adjusted earnings per share of $1.86 beat the Zacks Consensus Estimate by 10.1% and increased 21.6% from the year-ago quarter. EFX’s revenues of $1.6 billion surpassed the consensus estimate by 2.3% and improved 14.4% year over year.
Waste Connections, Inc. (WCN - Free Report) posted impressive first-quarter 2026 results. WCN’s adjusted earnings of $1.23 per share outpaced the consensus mark by 3.4% and rose 8.9% from the year-ago quarter. WCN’s total revenues of $2.37 billion beat the consensus mark by 0.7% and increased 6.4% year over year.
H&R Block remains a compelling long-term buy, trading at just 7x forward earnings despite double-digit EPS growth. HRB's Q3 FY2026 delivered a triple beat: EPS, revenue, and guidance all exceeded expectations, driving a 26% share price surge. Shareholder yield approaches 13% through aggressive buybacks and a 4.55% dividend, with further dividend increases likely in August.
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It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.28; value investors should take notice.
Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.14 to $5.12 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Consumer-focused stocks have faced mounting pressure in 2026 as investors weigh tariff concerns, cautious consumer spending patterns, and macroeconomic uncertainty fueled by elevated energy prices.
However, sharp pullbacks can create opportunities for value-minded investors, especially when fundamentally sound companies continue to reward shareholders with attractive dividends.
Three stocks that stand out in this regard right now are H&R Block (HRB - Free Report) ), Kohl’s (KSS - Free Report) ), and Upbound Group (UPBD - Free Report) ).
Each appears technically oversold after recent weakness, offers an enticing dividend yield above 3%, and has earned a Zacks Rank #1 (Strong Buy) thanks to a trend of positive earnings estimate revisions.
H&R Block: Oversold Tax Specialist With Reliable Income
H&R Block shares have cooled off considerably from their highs despite the company continuing to generate solid cash flow and steady earnings growth. The recent weakness has left HRB looking oversold at under $40 a share, potentially creating an attractive entry point for income-focused investors.
The tax preparation giant currently sports a dividend yield above 4.5%, making it appealing for investors seeking dependable portfolio income. H&R Block has also consistently returned cash to shareholders through buybacks as well, and implemented a double-digit dividend increase last July, bumping its quarterly payout from $0.38 per share to $0.42.
Operationally, H&R Block continues to benefit from resilient demand for assisted tax preparation services and expanding digital offerings. Recently topping earnings expectations for its fiscal third quarter earlier in the month, H&R Block has reinforced confidence in its underlying business momentum.
Most importantly for momentum investors, earnings estimates have been trending higher since the Q3 EPS beat. Zacks data shows analysts have raised current-year and next-year EPS estimates by 3% and 5%, in the last 30 days respectively, to projections of $5.12 and $5.57.
With a low forward P/E and P/S valuation, strong cash generation, and a healthy dividend, HRB could appeal to investors looking for a defensive consumer-centric stock that still appears to be oversold.
Kohl’s: Deeply Discounted Retail Play With Attractive Yield
Kohl’s has remained under pressure as investors continue to worry about discretionary retail spending trends. However, the selloff has pushed Kohl’s stock into what could end up being bargain territory at around $11 a share. Furthermore, at current levels, Kohl’s dividend yield is at an attractive 4.25% with a healthy payout ratio of around 30%.
Although retail conditions remain challenging, Kohl’s has shown signs of operational stabilization. To that point, Kohl’s most recently posted a sizable Q4 earnings surprise back in March, demonstrating that expectations may have become too pessimistic.
Kohl’s will be reporting Q1 results on Thursday, May 28, after previously posting Q4 EPS of $1.07, which was nearly 26% above expectations of $0.85 while rising from $0.95 per share a year ago.
Considering its improving earnings outlook, Kohl’s may represent a compelling turnaround candidate for contrarian investors, especially if consumer spending trends stabilize later in the year.
Upbound Group: High-Yield Opportunity Trading Near Depressed Levels
Upbound Group may be one of the most intriguing oversold income plays in the consumer space. Shares of the lease-to-own consumer household products provider and fintech-focused company have struggled amid broader concerns about lower-income consumers. This weakness has pushed Upbound’s dividend yield above 9% with UPBD trading under $20.
Despite the volatility, Upbound continues to generate solid operating performance. Upbound edged Q1 earnings expectations back in late April and maintained guidance that suggests continued profitability.
The improving earnings picture has translated into favorable analyst revisions, and income investors may also appreciate the company’s commitment to shareholder returns. While the elevated yield reflects market concerns, some analysts note that Upbound's dividend remains supported by cash flow generation.
Given Upbound’s depressed valuation of just 4X forward earnings, oversized dividend yield, and improving earnings outlook, UPBD could appeal to aggressive investors looking for a high-risk, high-reward recovery opportunity.
Summary & Final ThoughtsOversold stocks with improving earnings outlooks can often provide fertile ground for investors searching for value and income opportunities. H&R Block, Kohl’s, and Upbound Group each combine generous dividend yields with positive earnings estimate revisions strong enough to earn a Zacks Rank #1 (Strong Buy).
While consumer-focused names may remain volatile in the near term, these three stocks could reward patient investors if improving fundamentals eventually drive a rebound in sentiment.
On May 21, 2026, H&R Block Inc HRB shares fell 4.8% to a current price of $37.89. The stock has experienced a 52-week range of $28.16 to $59.05, showcasing significant volatility over the past year. Despite the recent decline, HRB has shown positive momentum over the last month, increasing by 17.3%.
GF Value™ verdict: Current price is $37.89 versus GF Value™ of $62.23, indicating a 39.1% undervaluation.GF Score™ is 74/100, which suggests the stock is above average in quality based on GuruFocus metrics.Notable signal: There have been no insider transactions in the last 3 months, indicating a lack of insider trading activity. Is HRB Overvalued or Undervalued? According to the GF Value™, H&R Block Inc HRB is significantly undervalued at its current price of $37.89 compared to the estimated fair value of $62.23. This 39.1% margin of safety presents a compelling opportunity for value-oriented investors. The GF Valuation label indicates that the stock is not only undervalued but offers a favorable risk-reward profile for potential investment.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. The current valuation suggests that HRB may be an attractive option, provided that investors consider market conditions and potential risks associated with the company's future earnings and growth prospects.
How Does HRB's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 6.7x 12.2x Forward P/E 6.5x N/A The current P/E (TTM) of 6.7x is significantly below the 5-year median P/E of 12.2x, indicating that the stock is trading at a lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict, reinforcing the view that HRB is undervalued based on historical performance metrics.
What Does HRB's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 5/10 Profitability 9/10 Growth 8/10 Valuation 4/10 Momentum 1/10 The GF Score™ of 74/100 indicates an above-average stock quality, with notable strengths in Profitability (9/10) and Growth (8/10), suggesting robust operational performance and potential for future expansion. However, the Valuation rank of 4/10 and a low Momentum rank of 1/10 signal caution, as the stock has exhibited weak price movement recently, which could hinder short-term performance.
What Are Insiders Doing with HRB Stock? There have been no insider transactions in the last three months, which suggests a lack of significant buying or selling activity by executives or board members. This inactivity could indicate that insiders are either confident in the company's future prospects or are waiting for more favorable market conditions.
What This Means for Investors Based on the GF Value™ assessment, H&R Block Inc HRB is currently undervalued. With a significant margin of safety and strong profitability metrics, it presents an interesting opportunity for potential investors looking for value stocks. However, investors should remain mindful of the overall market conditions and the company's performance moving forward.
For the complete analysis, visit the H&R Block Inc HRB stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is HRB's GF Score™?
HRB's GF Score™ is 74/100, indicating that it is above average in quality based on key metrics such as financial strength, profitability, growth, valuation, and momentum.
Is HRB overvalued or undervalued?
H&R Block Inc HRB is currently undervalued, with a GF Value™ of $62.23 compared to its price of $37.89, representing a significant margin of safety.
What is HRB's P/E ratio?
HRB's P/E (TTM) is 6.7x, which is 45% below its 5-year median P/E of 12.2x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today May 27th:
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.17 compared with 1.27 for the industry. The company possesses a Growth Score of A.
ASE Technology (ASX - Free Report) : This company, which is a provider of semiconductor manufacturing services in assembly and testing, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 36.4% over the last 60 days.
ASE Technology has a PEG ratio of 0.78 compared with 1.71 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 2.8% over the last 60 days.
H&R Block has a PEG ratio of 0.61 compared with 0.87 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today May 29th:
Sanmina (SANM - Free Report) : This company, which is a global provider of electronics contract manufacturing services, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11.5% over the last 60 days.
Sanmina has a PEG ratio of 0.84 compared with 1.06 for the industry. The company possesses a Growth Score of A.
Alliance Laundry Holdings Inc. (ALH - Free Report) : This company, which is a provider of commercial laundry systems, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 3.2% over the last 60 days.
Alliance Laundry has a PEG ratio of 1.17 compared with 1.27 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 0.77 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways HRB stock has jumped 26.1% in three months, beating the industry's 22.5% return.HRB's FY26 EPS estimate rose 4% in 60 days to $5.18, suggesting 11.2% y/y growth.HRB's AI Tax Assist aided paid DIY returns; DIY generated $383.7M, 10% of FY25 revenues. Shares of H&R Block (HRB - Free Report) have jumped 26.1% over the past three months, outperforming the industry’s 22.5% return.
What Makes HRB Stock an Attractive Pick?Solid Rank: H&R Block currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of A. Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment.
Northward Estimate Revisions: Three estimates for fiscal 2026 moved north in the past 60 days versus no southward revision, reflecting analysts’ confidence in the company. The Zacks Consensus Estimate for fiscal 2026 earnings has moved up 4% in the past 60 days.
Strong Growth Prospects: The Zacks Consensus Estimate for HRB’s earnings is pegged at $5.18 per share, indicating 11.2% year-over-year growth. Earnings are expected to register a 9.2% increase in fiscal 2027.
AI Tax Assist Boost Top Line: HRB integrated AI Tax Assist into DIY tax preparation, which is improving its top line. This technology enhances customer experience as it aids clients who prepare a paid DIY online return without extra changes. In fiscal 2025, the company generated $383.7 million in DIY tax preparation, representing 10% of the total revenues.
Active Share Repurchases: In fiscal 2023, 2024 and 2025, the company distributed $177.9 million, $179.8 million and $197.3 million in dividends, respectively. Additionally, it returned $569 million, $379.6 million and $437.1 million through share repurchases in fiscal 2023, 2024 and 2025, respectively. This strategy improves shareholder value and their confidence in the business's long-term potential.
Solid Liquidity Profile: H&R Block’s ratio at the end of the third quarter of fiscal 2026 was 1, higher than the industry’s 0.92. While the company is positioned to precisely cover its short-term obligations, it held $887 million in cash as of the end of the third quarter of fiscal 2026, hinting at a cash-heavy balance sheet.
Image Source: Zacks Investment Research
Other Stocks to ConsiderSome other top-ranked stocks from the broader Zacks Consumer Discretionary sector are PVH Corp. (PVH - Free Report) and Flexsteel Industries, Inc. (FLXS - Free Report) , each currently flaunting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
PVH Corp has a long-term earnings growth expectation of 7.5%. PVH delivered a trailing four-quarter earnings surprise of 14.2%, on average.
Flexsteel Industries has a long-term earnings growth expectation of 12%. FLXS delivered a trailing four-quarter earnings surprise of 59%, on average.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 2:
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 0.78 for the industry. The company possesses a Growth Score of B.
DaVita Inc. (DVA - Free Report) : This dialysis services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita has a PEG ratio of 0.64 compared with 2.21 for the industry. The company possesses a Growth Score of B.
Lifetime Brands, Inc. (LCUT - Free Report) : This home appliances company dealing primarily in kitchenware carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 19.7% over the last 60 days.
Lifetime Brands has a PEG ratio of 0.84 compared with 1.16 for the industry. The company possesses a Growth Score of A.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways Rising P/E ratios often signal investor confidence, earnings strength and further upside potential. The screen identifies stocks with accelerating earnings growth and sustained price momentum. ADBE, HRB, GLBE, ADSK and INTU pair rising P/Es with strong earnings performance. Investors often opt for the stock-picking approach that involves stocks with a low price-to-earnings (P/E) ratio. This strategy is based on the notion that the lower the P/E ratio is, the higher the stock value. The reasoning behind this is straightforward — when a stock's current market price does not adequately reflect its higher earnings, it suggests potential for growth.
But there is more to this whole P/E story. Because not only low P/E, stocks with a rising P/E can also fetch strong returns. In this regard, investors can bet on the likes of Adobe (ADBE - Free Report) , H&R Block (HRB - Free Report) , Global-E Online (GLBE - Free Report) , Autodesk (ADSK - Free Report) and Intuit (INTU - Free Report) .
Rising P/E: A Useful ToolThe concept is that as earnings rise, so should the price of the stock. As forecasts for expected earnings come in higher, strong demand for the stock should continue to push up its prices. After all, astock's P/E gives an indication of how much investors are ready to shell out per dollar of earnings.
Suppose an investor wants to buy a stock with a P/E ratio of 30. This means that he is willing to shell out $30 for only $1 worth of earnings as he expects earnings of the company to rise at a faster pace in the future owing to strong fundamentals.
So, if the P/E of a stock is rising steadily, it means that investors are assured of its inherent strength and expect some strong positives out of it.
Also, studies have revealed that stocks have seen their P/E ratios jump over 100% from their breakout point in the cycle. So, if you can pick stocks early in their breakout cycle, you can end up seeing considerable gains.
The Winning StrategyIn order to shortlist stocks that are exhibiting an increasing P/E, we chose the following as our primary screening parameters.
EPS growth estimate for the current year is greater than or equal to last year’s actual growth
Percentage change in last year EPS should be greater than or equal zero
(These two criteria point to flat earnings or a growth trend over the years.)
Percentage change in price over four weeks greater than the percentage change in price over 12 weeks
Percentage change in price over 12 weeks greater than percentage change in price over 24 weeks
(These two criteria show that price of the stock is increasing consistently over the said timeframes.)
Percentage price change for four weeks relative to the S&P 500 greater than the percentage price change for 12 weeks relative to the S&P 500
Percentage price change for 12 weeks relative to the S&P 500 greater than the percentage price change for 24 weeks relative to the S&P 500
(Here, the case for consistent price gains gets even stronger as it displays percentage price changes relative to the S&P 500.)
Percentage price change for 12 weeks is 20% higher than or equal to the percentage price change for 24 weeks, but it should not exceed 100%
(A 20% increase in the price of a stock from the breakout point gives cues of an impending uptrend. But a jump of over 100% indicates that there is limited scope for further upside and that the stock might be due for a reversal.)
In addition, we place a few other criteria that lead us to some likely outperformers.
Zacks Rank less than or equal to 2: Only companies with a Zacks Rank #1 (Strong Buy) or 2 (Buy) can get through.
Average 20-day Volume greater than or equal to 50,000: High trading volume implies that the stocks have adequate liquidity.
Just these few criteria narrowed down the universe from over 7,700 stocks to just 65.
Here are five out of the 65 stocks:
Adobe: This leading technology company, currently with a Zacks Rank #2 (Buy),offers a personalized digital experience through the infusion of artificial intelligence (AI) in its solutions. You can see the complete list of today’s Zacks #1 Rank stocks here.
The average four-quarter earnings surprise of ADBE is 2.46%.
H&R Block: The Zacks Rank #1 company is a leading provider of tax preparation services.
The average four-quarter earnings surprise of HRB is 1.75%.
Global-E Online: The Zacks Rank #2 company provides a platform to enable and accelerate global, direct-to-consumer cross-border e-commerce.
The average four-quarter earnings surprise of GLBE is 56.95%.
Autodesk: The Zacks Rank #2 develops model-based design, engineering and documentation software. The company serves customers in architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries.
The average four-quarter earnings surprise of ADSK is 7.07%.
Intuit: The Zacks Rank #2 business and financial software company develops and sells financial, accounting and tax preparation software, and related services for small businesses, consumers and accounting professionals globally.
The average four-quarter earnings surprise of INTU is 6.87%.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 4:
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.60 compared with 0.76 for the industry. The company possesses a Growth Score of B.
DaVita Inc. (DVA - Free Report) : This dialysis services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita has a PEG ratio of 0.62 compared with 2.15 for the industry. The company possesses a Growth Score of B.
Valero Energy Corporation (VLO - Free Report) : This transportation fuels and petrochemical products company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 67.2% over the last 60 days.
Vareo has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Learn more about the Growth score and how it is calculated here.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: H&R Block (HRB - Free Report) H&R Block Inc. is a leading provider of tax preparation services. The company provides assisted income tax return preparation, do-it-yourself (DIY) tax solutions, and other products and services associated with income tax return preparation in the United States, Canada, and Australia. All these continuing operations are reported under a single segment.
HRB is a #1 (Strong Buy) on the Zacks Rank, with a VGM Score of A.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 7.33; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.20 to $5.18 per share. HRB boasts an average earnings surprise of +1.8%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, HRB should be on investors' short list.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today June 5th:
Pitney Bowes (PBI - Free Report) : This global technology company, which is powering billions of transactions - physical and digital - in the connected and borderless world of commerce, carries a Zacks Rank #1 (Strong Buy), and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.75 compared with 0.91 for the industry. The company possesses a Growth Score of A.
Centene (CNC - Free Report) : This well-diversified healthcare company, that primarily provides a set of services to the government sponsored healthcare programs, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 15.3% over the last 60 days.
Centene has a PEG ratio of 0.49 compared with 1.05 for the industry. The company possesses a Growth Score of A.
H&R Block (HRB - Free Report) : This company, which is a leading provider of tax preparation services, carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.58 compared with 1.12 for the industry. The company possesses a Growth Score of B.
See the full list of top ranked stocks here.
Learn more about the Growth score and how it is calculated here.
It has been about a month since the last earnings report for H&R Block (HRB - Free Report) . Shares have added about 3.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is H&R Block due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for H&R Block, Inc. before we dive into how investors and analysts have reacted as of late.
H&R Block Reports Q3 Earnings BeatH&R Block reported impressive third-quarter fiscal 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.
HRB’s adjusted earnings of $6.02 per share beat the Zacks Consensus Estimate by 5.8% and increased 11.9% year over year. Revenues of $2.4 billion topped the Zacks Consensus Estimate by 2.5% and rose 5.3% year over year.
HRB’s Quarterly NumbersRevenues from U.S. tax preparation and related services were $2.2 billion, up 5.1% year over year. Revenues from Financial services totaled $54.8 million, marking a marginal year-over-year rise. International revenues of $70 million rose 16%, while Wave revenues jumped 11.8% to $29.9 million.
Key Balance Sheet & Cash Flow FiguresH&R Block exited the quarter with cash and cash equivalents of $867 million. Long-term debt was $1.5 billion compared with $2.4 billion at the end of the second quarter of fiscal 2026. The company generated $1.5 billion of cash in operating activities, while capital expenditures totaled $18.4 million.
HRB’s FY26 OutlookHRB guided adjusted earnings in the range of $5.10-$5.20 per share for fiscal 2026. Revenues are expected to be between $3.910 billion and $3.920 billion.
The company guided EBITDA between $1.025 billion and $1.035 billion and an effective tax rate of 14%.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -6.43% due to these changes.
VGM ScoresCurrently, H&R Block has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, H&R Block has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry PlayerH&R Block belongs to the Zacks Consumer Services - Miscellaneous industry. Another stock from the same industry, Cimpress (CMPR - Free Report) , has gained 5.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Cimpress reported revenues of $886.21 million in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.55 for the same period compares with -$0.33 a year ago.
Cimpress is expected to post earnings of $1.00 per share for the current quarter, representing a year-over-year change of +198%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.5%.
Cimpress has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A.
Here are three stocks with buy ranks and strong growth characteristics for investors to consider today, June 8:
Valero Energy Corporation (VLO - Free Report) : This energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 55.2% over the last 60 days.
Valero has a PEG ratio of 0.38 compared with 0.49 for the industry. The company possesses a Growth Score of B.
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 1.06X for the industry. The company possesses a Growth Score of A.
Marathon Petroleum Corporation (MPC - Free Report) : This integrated downstream energy company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 53.5% over the last 60 days.
Marathon Petroleum has a PEG ratio of 0.42 compared with 0.49 for the industry. The company possesses a Growth Score of B.
See the full list of top-ranked stocks here.
Learn more about the Growth score and how it is calculated here.
Key Takeaways AI valuation concerns are rising as investors reassess lofty earnings multiples and spending levels.Rising infrastructure costs, critical-mineral demand and geopolitical risks may pressure AI investments.CrossAmerica Partners, Global Partners, H&R Block and B&G Foods offer attractive shareholder yields. Artificial intelligence remains the dominant investment theme of 2026, but the spectacular rally in AI-linked stocks is increasingly raising concerns about stretched valuations. Investors have poured capital into semiconductor makers, hyperscalers and Artificial Intelligence (AI) software firms on expectations of transformative long-term growth. However, recent market action suggests that enthusiasm may be running ahead of fundamentals.
Reuters recently reported that technology shares sold off sharply as investors reassessed lofty AI-related valuations amid changing interest-rate expectations. Market participants cited elevated earnings multiples, concentration of capital in a handful of AI leaders and growing speculative activity in private AI companies as key sources of vulnerability. Reuters also noted that concerns are rising over whether massive AI spending can generate returns quickly enough to justify current valuations.
Skepticism is not centered on AI's ability to reshape the global economy, but on whether equity markets have already priced in much of the anticipated growth. Against this backdrop, companies with a proven track record of returning cash to shareholders may offer greater resilience.
Stocks with strong shareholder yield not only provide income through dividends but also support valuations through buybacks and disciplined capital allocation. As geopolitical risks and AI volatility persist in 2026, these companies may serve as an important anchor for investor portfolios navigating turbulent markets.
Among companies offering attractive shareholder yields are H&R Block (HRB - Free Report) , Global Partners (GLP - Free Report) , CrossAmerica Partners (CAPL - Free Report) and B&G Foods (BGS - Free Report) . These stocks also carry favorable Zacks Ranks and Style Scores, suggesting potential upside in their share prices this year and enhancing their ability to generate long-term shareholder value.
What Is Driving Premium AI Valuations?The premium valuations assigned to AI-related companies are being fueled by an unprecedented surge in capital spending. Leading technology firms are investing heavily in semiconductors, cloud infrastructure, data centers and AI models as they compete to establish long-term leadership positions.
Reuters reported that major technology companies are engaged in an escalating competition for AI talent, computing power and infrastructure. The race has prompted record investment commitments from companies such as Microsoft, Alphabet, Meta Platforms, Amazon and Nvidia. At the same time, AI-related private companies continue to command extraordinary valuations as investors chase exposure to the sector’s growth potential.
Demand forecasts remain compelling. The U.S. Energy Information Administration projects power consumption to reach new records in 2026 and 2027, driven in part by surging demand from AI data centers. Reuters also reported that AI, robotics and defense applications are expected to drive a 50% increase in global copper demand by 2040, highlighting the scale of infrastructure required to support the AI revolution.
Rising Input Costs and Geopolitical Risks Add PressureWhile AI growth prospects remain attractive, the sector faces mounting cost pressures.
Copper, rare earth elements and other critical minerals are becoming increasingly important inputs for AI infrastructure. Reuters reported that demand for strategic minerals is accelerating as governments and corporations compete to secure supply chains for advanced technologies and defense systems. Industry analysts continue to warn about potential shortages of critical materials required for data centers, power infrastructure and semiconductor production.
Geopolitical risks are creating additional uncertainty. Competition for critical minerals, export controls, supply-chain realignment and regional conflicts continue to threaten the stability of global technology supply chains. These risks could lead to higher operating costs and lower returns on massive AI infrastructure investments.
Why Shareholder Yield Matters in This EnvironmentAs valuation concerns grow, investors may increasingly favor companies with strong shareholder yield rather than firms relying solely on future growth expectations.
Shareholder yield combines dividend payments, share repurchases and debt reduction to measure the total capital returned to investors. Companies with strong shareholder yield typically generate substantial free cash flow, maintain healthy balance sheets and demonstrate disciplined capital allocation.
These characteristics become particularly valuable when market leadership is concentrated and valuation risk is high. Dividend income can help cushion portfolio volatility, while buybacks support earnings per share and provide a degree of downside protection. Debt reduction further strengthens financial flexibility during uncertain periods.
In contrast to highly valued growth stocks whose returns depend heavily on future expectations, shareholder-yield companies provide investors with a tangible source of return.
A More Balanced Approach to 2026The long-term AI opportunity remains significant, but rising valuation concerns, increasing infrastructure costs and growing geopolitical risks suggest investors should remain selective. As markets become more sensitive to earnings delivery and return on investment, companies with strong shareholder yield may offer a useful counterbalance to expensive growth stocks.
By combining dividends, buybacks and balance-sheet strength, shareholder-yield companies provide a measure of stability that can help investors weather volatility while still participating in long-term wealth creation.
Our Shareholder Yield Screen makes it easy to identify high-potential stocks at any given time — just like the ones mentioned above.
Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Stocks With Strong Shareholders’ YieldH&R Block stands out as a strong candidate for high shareholder yield due to its attractive dividend payments, consistent share buybacks and effective debt management. The company offers a good dividend yield of around 4.41%.
HRB has increased its dividend payout five times in the past five years, reflecting an annualized dividend growth rate of 11.2%. The payout ratio of 32% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that Eni is keeping funds for better investment opportunities.
H&R Block has also repurchased shares worth $400.1 million in the first nine months of fiscal 2026, preceded by another $400.1 million worth of repurchase in fiscal 2025. The company currently has remaining authorization of $700 million. It also reduced its long-term debt from $1.98 billion (in 2021) to $1.49 billion (as of March 2026-end).
H&R Block’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
HRB currently sports a Zacks Rank #1 (Strong Buy) and a Zacks VGM Score of A, implying strong potential for continued uptrend. You can see the complete list of today’s Zacks #1 Rank stocks here.
Image Source: Zacks Investment Research
General Partners owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The company can offer stability to investors’ portfolios through its strong shareholder yield. It offers a dividend yield of around 6.23%.
GLP has increased its dividend payout 17 times in the past five years, reflecting an annualized dividend growth rate of 7.1%. The payout ratio of 84% indicates that the company is paying less than its income, which is sustainable over the long term. This also reflects that GLP is keeping funds for better investment opportunities.
The company has repurchased 1,734,658 common units since launching its repurchase program in May 2009 through Dec. 31, 2025. As of Feb. 27, 2026, it remained authorized to repurchase up to an additional 865,929 common units. The company has also strengthened its balance sheet, reducing long-term debt from $1.68 billion in 2024 to $1.65 billion as of March 31, 2026.
General Partners’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
GLP currently flaunts a Zacks Rank of 1 and a Zacks VGM Score of B, implying strong upside potential.
Image Source: Zacks Investment Research
CrossAmerica Partners engages in the wholesale distribution of motor fuels, with the potential to offer stability amid rising volatility through its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 9.5%.
It has also reduced its long-term debt from $1.62 billion in 2021 to $726 million as of March 2026-end.
CAPL’s shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
CrossAmerica Partners currently sports a Zacks Rank #1 and a Zacks VGM Score of A, implying continued upside potential.
Image Source: Zacks Investment Research
B&G Foods is another strong candidate for high shareholder yield due to its attractive dividend payments and effective debt management. The company offers a solid dividend yield of around 19.49%.
It has also reduced its long-term debt from $2.34 billion in 2022 to $2 billion as of March 2026-end.
B&G Foods’ shareholder yield remains impressive, making it a compelling choice for investors seeking a combination of income and capital appreciation while benefiting from disciplined capital allocation.
BGS currently carries a Zacks Rank of 2 and a Zacks VGM Score of A, implying moderate upside potential for the stock.
DaVita Inc. (DVA - Free Report) : This kidney dialysis company has a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 6.4% over the last 60 days.
DaVita Inc. has a PEG ratio of 0.65 compared with 2.13 for the industry. The company possesses a Growth Score of A.
H&R Block, Inc. (HRB - Free Report) : This DIY tax return preparation services company carriesa Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.
H&R Block has a PEG ratio of 0.59 compared with 1.05 for the industry. The company possesses a Growth Score of A.
Pitney Bowes Inc. (PBI - Free Report) : This shipping and mailing services company carries a Zacks Rank #1, and has witnessed the Zacks Consensus Estimate for its current year earnings increasing 11% over the last 60 days.
Pitney Bowes has a PEG ratio of 0.75 compared with 0.86 for the industry. The company possesses a Growth Score of A.
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Learn more about the Growth score and how it is calculated here.
H&R Block (HRB - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for H&R Block basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for H&R Block imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for H&R BlockThis tax preparer is expected to earn $5.18 per share for the fiscal year ending June 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for H&R Block. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of H&R Block to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
