H&R Block (HRB) has jumped back into focus after third quarter earnings, with higher revenue and net income supported by a tax benefit and buybacks, a raised 2026 outlook, and ongoing dividend support.

The strong third quarter update, outlook upgrade and dividend affirmation have come after a weaker start to the year, with the share price still down about 15% year to date despite a 21% 30 day share price gain and a much stronger 3 and 5 year total shareholder return. This suggests momentum has recently picked up as investors reassess growth and risk around the current US$36.06 level.

If this earnings driven move has you looking beyond tax preparation, it could be a good moment to scan other areas of the market through our screener of 19 top founder-led companies

With HRB up 21% in 30 days but still down about 15% year to date, and with an intrinsic value estimate suggesting a wide discount to the current US$36.06 price, is there mispricing here or is future growth already reflected?

Most Popular Narrative: 12% Undervalued

Against the narrative fair value of $41, H&R Block's last close at $36.06 sits at a clear discount that centers the debate on future cash generation and tax season execution.

The ongoing growth in tax code complexity, illustrated by recent legislative changes (e.g., One Big Beautiful Bill) and the shift of more consumers, including higher-income and small business clients, to professional assistance, positions H&R Block to benefit from increased client demand and higher-value client segments; this is likely to drive sustained revenue growth and improved earnings mix over time.

Curious what underpins that valuation gap? The narrative leans on measured revenue growth, a steady profit margin profile, and a future earnings multiple that stays well below the broader Consumer Services pack.

Result: Fair Value of $41 (UNDERVALUED)

However, you still need to weigh the risk that H&R Block continues to cede share to digital-first rivals, while higher fixed costs pressure earnings in weaker tax seasons.

Next Steps

With both risks and rewards in play, do you feel the balance of sentiment fits your own expectations, or is the story more mixed than it seems at first glance? To firm up your view quickly, go straight to the source data, compare the upside and downside, and weigh the 4 key rewards and 3 important warning signs

Looking for more investment ideas?

If HRB has sharpened your focus, do not stop here. There are plenty of other stocks worth putting on your radar using targeted screeners.

• Zero in on quality at a discount by checking companies flagged in our 48 high quality undervalued stocks.
• Prioritise staying power by reviewing stocks in the solid balance sheet and fundamentals stocks screener (44 results).
• Spot potential early movers by scanning the screener containing 21 high quality undiscovered gems.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.