by Ian Cooper

It’s not tax time just yet.

But it doesn’t hurt to start investing in related stocks a bit early.

Far too many of us are unwilling to do our own taxes, so we leave it up to trusted tax professionals. That way we don’t make mistakes with filing status, dependents, capital gains, or making dangerous assumptions. Many of us also forget human error can be costly. Even the smallest error can lead to expensive tax bills and a possible visit from the IRS. 

That being said, you should keep an eye on these two tax stocks.

H&R Block (HRB)

One of the top tax stocks to buy is H&R Block (HRB), a no-brainer with tax season.

Every year around this time, HRB rockets higher. We saw it happen just about every year. Last year, it ran from about $42 in October to a May high of $53.55. In 2022, it ran from about $37 in October to a high of $41.53 by December. Not only can you make money from its potential appreciation this time of year, but you can also collect its yield of 2.5%. 

Intuit (INTU)

There’s also Intuit (INTU), whose TurboTax is popular with taxpayers.

At $604 a share, it’s another one that typically runs around this time of the year. Last year, it ran from about $505 in October to a high of $667 by February. In 2023, it ran from about $393 to a high of $452.84 by January.

Helping, “the company has a net income margin of 18.2%, which is far higher than the sector median of 3.8%. Moreover, its gross profit margin is 79.6%, which is significantly higher than the sector median of 50.1%. I think this is a big reason to be bullish, and considering the company’s heavy focus on AI, I expect further margin expansion to accrue over time due to internal automation capabilities,” noted Seeking Alpha.