What Happened?

A number of stocks fell in the afternoon session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. 

The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Consumer Discretionary - Travel and Vacation Providers company Wyndham (NYSE: WH) fell 1.9%. Is now the time to buy Wyndham? Access our full analysis report here, it’s free.
• Consumer Discretionary - Leisure Products company Malibu Boats (NASDAQ: MBUU) fell 4.4%. Is now the time to buy Malibu Boats? Access our full analysis report here, it’s free.
• Consumer Discretionary - Real Estate Services company Cushman & Wakefield (NYSE: CWK) fell 2%. Is now the time to buy Cushman & Wakefield? Access our full analysis report here, it’s free.
• Consumer Discretionary - Specialized Consumer Services company H&R Block (NYSE: HRB) fell 5.2%. Is now the time to buy H&R Block? Access our full analysis report here, it’s free.
• Consumer Discretionary - Travel and Vacation Providers company Delta (NYSE: DAL) fell 3.7%. Is now the time to buy Delta? Access our full analysis report here, it’s free.

Zooming In On H&R Block (HRB)

H&R Block’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 6 months ago when the stock dropped 6% on the news that the company reported mixed second-quarter results, as an earnings miss and weaker-than-expected guidance for the upcoming fiscal year overshadowed a slight revenue beat. The tax preparation company posted adjusted earnings per share of $2.27, well below analyst expectations of $2.83. Although revenue came in slightly ahead of forecasts at $1.11 billion, the focus remained on profitability. The earnings miss was partly due to a one-time tax benefit of $0.50 per share being pushed to the next quarter. Looking ahead, H &R Block's earnings forecast for fiscal 2026 of $4.85 to $5.00 per share also fell short of consensus estimates.

H&R Block is down 32.9% since the beginning of the year, and at $28.57 per share, it is trading 54.7% below its 52-week high of $63.04 from April 2025. Investors who bought $1,000 worth of H&R Block’s shares 5 years ago would now be looking at an investment worth $1,456.

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