H&R Block Inc (HRB): Diversified Services' Featured Daily Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

H&R Block ( HRB) pushed the Diversified Services industry lower today making it today's featured Diversified Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, H&R Block fell 30 cents (-1%) to $28.43 on average volume. Throughout the day, 4.6 million shares of H&R Block exchanged hands as compared to its average daily volume of 4.8 million shares. The stock ranged in price between $28.36-$28.90 after having opened the day at $28.74 as compared to the previous trading day's close of $28.73. Other companies within the Diversified Services industry that declined today were: Bioanalytical Systems ( BASI), down 7%, Mitcham Industries ( MIND), down 6.3%, General Finance Corporation ( GFN), down 4.9%, and Universal Technical Institute ( UTI), down 4.8%.
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H&R Block, Inc., through its subsidiaries, engages in the provision of tax preparation and related services to the general public in the United States, Canada, and Australia. H&R Block has a market cap of $7.96 billion and is part of the services sector. The company has a P/E ratio of 25.2, above the S&P 500 P/E ratio of 17.7. Shares are up 54.7% year to date as of the close of trading on Wednesday. Currently there are two analysts that rate H&R Block a buy, no analysts rate it a sell, and two rate it a hold.

TheStreet Ratings rates H&R Block as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and premium valuation.

On the positive front, AeroCentury Corporation ( ACY), up 9.8%, Swisher Hygiene ( SWSH), up 6%, Xueda Education Group ( XUE), up 5.9%, and Shutterstock ( SSTK), up 5.6%, were all gainers within the diversified services industry with Moody's Corporation ( MCO) being today's featured diversified services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the diversified services industry could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the diversified services industry could consider ProShares Ultra Short Consumer Sers ( SCC).

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