#5: H&R Block
Tax preparation firm H&R Block (NYSE:HRB) was one of the few companies that can say it benefited nicely from all the fiscal fuss in D.C. over the last few months. That’s because with complex changes to the tax codes and some confusion among taxpayers, Americans are more likely to drop in and have a professional file their taxes this year.
H&R Block is an extremely cyclical business that books nearly all of profits in a very short time frame during tax season, so speculators have piled in anticipating results from January through April to be quite strong. Of course, widespread errors and the cloud of a lawsuit have admittedly taken the bloom off the rose lately … so expecting continued gains for the stock could end badly.