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.