10 Cheap Hot Stocks to Buy Right Now

4. H&R Block Inc. (NYSE:HRB)

Forward P/E Ratio as of April 16: 11.99

Gain Over the Past 1 Month: 20.91%

Number of Hedge Fund Holders: 27

H&R Block Inc. (NYSE:HRB) provides assisted and DIY tax return preparation services to the general public. It offers assisted income tax return preparation and related services through in-person visits. This is done through a system of retail offices operated directly by the company or its franchisees, as well as online and mobile applications, and virtual and desktop software.

The company’s Assisted tax preparation services utilize a network of ~9,000 company and franchise offices across the US, which are located within 5 miles of most Americans. It’s supported by ~60,000 expert tax professionals who average 10 years of experience with the brand, as of FQ2 2025. The Assisted segment offers clients transparent pricing, flexible filing options, and personalized advice from experienced tax professionals.

H&R Block Inc. (NYSE:HRB) has improved its Tax Pro matching algorithm to connect clients with the best-suited expert. To remove price as a barrier for new clients, H&R Block offers a price match guarantee and matches the price paid to a previous tax preparer by up to 50%. It also offers the Second Look service free of charge as a value differentiator. This service reviews the past 3 years of a new client’s tax returns for missed refunds

Conventum – Alluvium Global Fund stated the following regarding H&R Block, Inc. (NYSE:HRB) in its Q4 2024 investor letter:

“H&R Block, Inc. (NYSE:HRB) (down 16.3%), reported first quarter earnings largely in line with our expectations, and re-affirmed its FY25 guidance. We were also pleasantly surprised to hear its mobile banking platform, Spruce, has now grown to more than USD 1b in customer deposits. But the share price fell 6.6% on the day. Then a few days later media reports suggested that Musk’s DOGE was considering creating a mobile app for tax returns. It seems that on that news its share price fell 8.2% (and peer Intuit fell 5.1%). H&R Block already offers free tax returns, and we can’t see any new US government provided mobile app as having any material implications to its business. With the business being even better priced, and with it offering an 8.0% earnings yield and being at a small discount to our valuation, we are happy holders at 4.3% of the Fund.”