Intuit is shifting its tax preparation strategy to prioritize customer acquisition over near-term revenue, launching competitive pricing through Credit Karma Tax (free federal, $15 state filing) while maintaining TurboTax's premium positioning. However, this strategy will moderate TurboTax revenue growth to 2-3% in fiscal 2027 from 7% in 2026, as the company lost 3 percentage points of DIY tax e-file market share due to pricing pressures.

H&R Block (HRB) and Imax (IMAX) are outperforming the Consumer Discretionary sector year-to-date. HRB has returned 2.3% versus the sector's -11.1% decline, with improved earnings estimates and a Zacks Rank #2 (Buy). IMAX has surged 38.8% with an 18.2% increase in consensus EPS estimates over three months, also holding a Zacks Rank #2 (Buy).

Intuit (INTU) shares gained 8.7% over three months, driven by strong mid-market and financial services growth. The company projects 9-10% revenue growth for fiscal 2027, slower than fiscal 2026. However, weak customer acquisition, competitive tax pricing pressures, and premium valuation warrant caution. Existing shareholders should monitor quarterly customer gains, while new investors may want to wait for clearer evidence of improved growth.

Zacks Premium offers investment research tools including the Zacks Rank stock-rating system and Style Scores to help investors identify stocks with strong performance potential. The service features daily updates, equity research reports, and stock screens. H&R Block (HRB) is highlighted as a Strong Buy with attractive valuation metrics and positive earnings estimate revisions.

Zacks has added five stocks to its Strong Buy list today: Sandisk Corporation, Calumet Inc., Chevron Corporation, H&R Block Inc., and Goldman Sachs BDC Inc. All five companies have seen their consensus earnings estimates increase over the last 60 days, ranging from 8.1% to 15.3%.

Zacks highlights three stocks with Rank #1 (Strong Buy) ratings and strong growth characteristics: BP p.l.c. with 32.4% earnings estimate increase, KE Holdings Inc. with 22.5% earnings estimate increase, and H&R Block Inc. with 8.1% earnings estimate increase. All three companies have favorable PEG ratios compared to their respective industries and possess a Growth Score of B.

Zacks highlights three Rank #1 stocks with strong income characteristics: Goldman Sachs BDC with a 14.1% dividend yield and 12.2% earnings estimate increase; H&R Block with a 4.4% dividend yield and 8.1% earnings estimate increase; and Canadian Natural Resources with a 3.7% dividend yield and 6% earnings estimate increase.

Intuit is pivoting its fiscal 2027 strategy to prioritize new customer growth after additions slowed in key business segments. The company is launching QuickBooks Free and Lite to attract entrepreneurs earlier, while TurboTax is adjusting pricing to compete with lower-cost providers. This shift results in lower expected revenue growth of 9%-10% for fiscal 2027 versus 14% in fiscal 2026, as Intuit invests heavily in customer acquisition while betting on deeper platform monetization over time.

H&R Block (HRB) stock has gained 30.1% over six months, outperforming its industry. The company's growth is driven by AI Tax Assist handling 4.1M client messages (88% YoY increase), Wave's double-digit revenue growth from Pro-Tier subscriptions, and a strong balance sheet with $978M cash and no debt. Operating cash flow increased 23% YoY, while the company continues shareholder-friendly dividend and buyback programs.

With traditional retirement income sources like Treasury bonds and Social Security becoming less reliable, the article recommends dividend-paying stocks from high-quality companies as an alternative income strategy for retirees. Three specific stocks are highlighted: Bristol Myers Squibb (3.94% yield), Horace Mann (3.20% yield), and H&R Block (4.56% yield), all offering steady dividend growth that can help combat inflation while reducing portfolio volatility.

With Treasury bond yields significantly lower than in the past and Social Security facing potential funding challenges by 2035, retirees are turning to dividend-paying stocks from high-quality companies as an alternative income source. The article recommends seeking stocks with steady dividend histories, around 3% yield, and positive yearly growth to combat inflation while generating reliable retirement income.

Intuit's 'Big Bets' (Assisted Tax, Money, and Mid-Market) represent 30% of fiscal 2026 revenues with over 30% year-over-year growth, significantly outpacing overall company growth of 14%. While the company sees a $300B+ addressable market and leverages AI across 82 million consumers and 10 million businesses, new customer acquisition fell short of expectations in fiscal 2026. Management guides fiscal 2027 revenue growth of 9%-10% while continuing to invest in scaling these growth engines.