HRB

H&R Block reported strong FY26 results with assisted tax revenues up 6.1% and Wave growing 12.3%, supported by AI-driven efficiencies that boosted EBITDA 8.3% and adjusted EPS 13.9% to $5.31. However, the company faces headwinds from declining DIY volumes (-5.6%), rising technology costs, and intense competition, increasing reliance on pricing to sustain growth.

H&R Block (HRB) and Imax (IMAX) are outperforming the Consumer Discretionary sector year-to-date. HRB has returned 2.3% versus the sector's -11.1% decline, with improved earnings estimates and a Zacks Rank #2 (Buy). IMAX has surged 38.8% with an 18.2% increase in consensus EPS estimates over three months, also holding a Zacks Rank #2 (Buy).

Zacks Premium offers investment research tools including the Zacks Rank stock-rating system and Style Scores to help investors identify stocks with strong performance potential. The service features daily updates, equity research reports, and stock screens. H&R Block (HRB) is highlighted as a Strong Buy with attractive valuation metrics and positive earnings estimate revisions.