Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, tax prep specialist H&R Block has received a distressing two-star ranking.

With that in mind, let's take a closer look at H&R Block, and see what CAPS investors are saying about the stock right now.

H&R Block facts

  

Headquarters (founded)

Kansas City, Mo. (1946)

Market Cap

$7.8 billion

Industry

Personal services

Trailing-12-Month Revenue

$2.6 billion

Management

CEO William Cobb (since 2011)

CFO Gregory Macfarlane (since 2012)

Return on Equity (average, past 3 years)

49.9%

Cash/Debt

$418.4 million / $1.3 billion

Competitors

Intuit


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 34% of the 542 members who have rated H&R Block believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those Fools, ayekappy, highlighted H&R Block as a rather untimely opportunity:

Horrible company with a failing business model. Probably won't be getting new customers and will lose a lot of existing customers due to their famous error and essentially lying about what % of people got their returns back already. They may have to hide under TaxAct to make people forget about their stained name. Next quarter's numbers should be pretty ugly compared to normal since the glitch was heard about earlier in the tax season, so they already started bleeding customers this tax season.

While you can certainly make gains in mediocre companies with a little controversy surrounding them, the best investing approach is to choose great businesses and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why H&R Block Is Poised to Pull Back originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends Intuit. The Motley Fool owns shares of Intuit. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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