Press Release Details

KANSAS CITY, Mo.--(BUSINESS WIRE)--Nov. 29, 2005--Getting ahead of the industry, H&R Block Financial Advisors (NYSE:HRB) has published its list of equities believed to offer the most attractive total return potential for 2006. An interesting mix of well-known names and lesser-known companies comprise the list. An example of the picks are International Speedway Corp. because of the impressive growth of motor sports (now the second largest audience behind the NFL) and Neurocrine Biosciences Inc. due to its emerging profitability and interesting product pipeline.

"Our list of 19 equities was compiled by our independent internal team of sector analysts," said Lyle Schonberger, director of the firm's Investment Management Department. "Based on our proprietary research and market outlook for the coming year, we believe these companies are well-positioned to outperform in 2006." According to Schonberger, the stock picks are based upon rigorous analysis around the fundamental factors of valuation, competitive position and market conditions.

These picks were made within the context of a variety of comprehensive economic factors. "Our outlook for 2006 is a reserved one," says Marc Zabicki, CFA, senior market strategist for H&R Block Financial Advisors. "There may be some form of bounce once the Fed is through with its monetary tightening phase, but that's not likely to happen in the early part of next year."

According to Zabicki, even though market valuations may look appealing, certain factors are impacting returns. "In our view, we believe monetary policy and inflation fears could keep the S&P 500 from reaching double digit returns in 2006. Once past these issues, we see few major positive catalysts that could push equities discernibly higher." Zabicki added, "We are, however, anticipating a favorable economic foundation and stable, albeit slower, corporate earnings growth."

Representing nearly every economic sector, there are other compelling equities on the list. For example, Stryker Corp., a maker of orthopedic and other medical devices, is taking advantage of long-term demographic trends that favor our aging population. Another pick of note is FPL Group Inc., a leader in harnessing wind and solar power -- alternatives to fossil fuel sources.

"The picks, and the list as a whole, are designed with our larger view of the market in mind," Zabicki said. These picks are not strangers or newcomers to the firm's research team. All are selected from separate industry focus lists that analysts at the firm maintain on an ongoing basis.

The table below lists 19 stocks that represent the top picks for 2006. Not listed in any order, they are grouped according to their sector.

Company                       Ticker    Exchange    Sector

Comcast Corp.                 CMCSA     NASDAQ      Consumer Disc.
International Speedway Corp.  ISCA      NASDAQ      Consumer Disc.
CVS Corp.                     CVS       NYSE        Consumer Staples
Pepsi Bottling Group Inc.     PBG       NYSE        Consumer Staples
United Natural Foods Inc.     UNFI      NASDAQ      Consumer Staples
Global Santa Fe Corp.         GSF       NYSE        Energy
Schlumberger Ltd.             SLB       NYSE        Energy
Capital One Financial Corp.   COF       NYSE        Financials
Wachovia Corp.                WB        NYSE        Financials
Neurocrine Biosciences Inc.   NBIX      NASDAQ      Health Care
Stryker Corp.                 SYK       NYSE        Health Care
Teva Pharmaceutical Ind.      TEVA      NASDAQ      Health Care
3M Company                    MMM       NYSE        Industrials
URS Corp.                     URS       NYSE        Industrials
Dell Inc.                     DELL      NASDAQ      Technology
Intel Corp.                   INTC      NASDAQ      Technology
Micron Technology             MU        NYSE        Technology
Verizon Communications        VZ        NYSE        Telecommunications
FPL Group Inc.                FPL       NYSE        Utilities

The timing of the list coming out in November is important for clients. "Our desire is to provide our advisors with a diversified list of equities early so they can work with their clients to begin strategies for the new year," Schonberger said. "We want to help our clients be ahead of the game, not a follower."

Disclosure: Unless otherwise indicated, comments in this document should not be construed as an investment opinion or recommendation of the securities mentioned.

About H&R Block:

H&R Block Inc. (NYSE:HRB) is a leading provider of tax, financial, mortgage, accounting and business consulting products and services. H&R Block is the world's largest tax services provider, having prepared more than 400 million tax returns since 1955. The company and its subsidiaries generated revenues of $4.4 billion and net income of $636 million in fiscal year 2005 from operations in four principal business segments: tax preparation and advice via in-office, online and software solutions; investment and financial advisory services; retail and wholesale mortgage services; and tax/accounting/business consulting services for mid-sized businesses. Headquartered in Kansas City, Mo., H&R Block markets its products and services under three leading brands - H&R Block, Option One and RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.

H&R Block Financial Advisors provides brokerage services and investment planning in the U.S. Services offered include traditional brokerage services, as well as annuities, insurance, fee-based accounts, online account access, equity research and focus lists, model portfolios, asset allocation strategies and other investment tools and information. H&R Block Financial Advisors Inc., is a registered broker-dealer with the SEC and member of the NYSE, SIPC and NASD.

CONTACT: H&R Block Inc.
Media Relations:
Dan Grubbs, 816-932-4894

SOURCE: H&R Block Inc.