H&R Block, Inc

H&R Block, Inc (NYSE: HRB) is a leading service provider of income tax preparation to the public, primarily in the United States, Canada, and Australia.

Investment Rationale – EXPENSIVE at USD 25.75

• On the leverage front, HRB’s debt to equity ratio of 4.21x remained more than the industry median of 0.30x during FY21, indicating that the Company had a large amount of debt piled up on the balance sheet.
• From a technical standpoint, HRB is hovering around the upper Bollinger band, indicating a correction in the stock price.
• Moreover, the 14-days RSI of ~66.97 is also indicating a correction in the stock price.
• The stock is trading very close to 52 weeks high, making it difficult for the stock price to show any upside potential.

One Year Share Price Chart

(Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the overstretched valuations, and unfavourable technical indicators, we have given an “EXPENSIVE” recommendation on H&R Block, Inc at the closing market price of USD 25.75 (as of 17 August 2021).

Niu Technologies

Niu Technologies (NASDAQ: NIU) is engaged in the manufacturing of high-performance smart e-scooters.

Investment Rationale – WATCH at USD 24.33

• The larger-than-expected economic slowdown in China during July 2021 may adversely impact the performance of the Electric Vehicles industry.
• The revenue per e-scooter had shown a decline of around 7.3% during Q2 FY21 as compared to Q2 FY20.
• The selling & marketing expenses represented around 7.0% of revenues during Q2 FY21, while it was 6.60% of the total revenue during Q2 FY20.
• From a technical standpoint, the 20-day exponential moving average of USD 24.93 is indicating a correction in the stock price.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the unfavourable technical indicator and economic slowdown in China, we have given a “WATCH” recommendation on Niu Technologies at the closing market price of USD 24.33 (as on 17 August 2021).  

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement.

Disclaimer

The advice given by Kalkine Canada Advisory Services Inc. and provided on this website is general information only and it does not take into account your investment objectives, financial situation and the particular needs of any particular person. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. The website www.kalkine.ca is published by Kalkine Canada Advisory Services Inc. The link to our Terms & Conditions has been provided please go through them. On the date of publishing this report (mentioned on the website), employees and/or associates of Kalkine do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations later.