Intuit (INTU) is a US-based business that creates financial software, it’s best known for its accountancy products, TurboTax, and QuickBooks. Intuit is the dominant force in the accountancy software sector, claiming over a 70% market share. It predominantly serves businesses and with B2B sales always being particularly lucrative, it’s no wonder Intuit has been seeing such staggering numbers recently. Over the past day, mentions for this trending stock were up by more than 60% signaling that buyers could begin snagging up Intuit shares while the market is still recovering from its crash. The current price of Intuit stock is around $471, down 25% YTD.
Intuit’s deal with Bill.com to promote the company's services is lucrative for both companies. However, there’s a good chance Intuit could attempt to create their own service akin to Bill.com. This isn’t a far stretch of the imagination either, especially when you consider the rate at which Intuit has been acquiring companies that improve the synergy between the products they offer.
On the topic of acquisitions, Inuit’s 2020 purchase of Credit Karma is clearly paying off with it contributing a crazy amount of quarterly revenue with Q2 2022’s numbers sitting around the $444 million mark.
Intuit has been growing its revenue consistently over the past few years. In 2020 the company enjoyed fiscal CAGR revenue of $7.6 billion before this number climbed to $9.6 billion in 2021, with 2022 predictions around the $12.2 billion level.
The two primary products offered by Intuit, TurboTax, and QuickBooks have 73% and 77% shares of their respective markets. This makes Intuit a force to be reckoned with in the accountancy software sector.
Dividends are always a bonus when buying a stock. Intuit currently pays investors a reasonable $2.72 per share in annual dividends. Additionally, Intuit is planning a $2.5 billion share buyback which has the potential to push the share price even higher.
With the number of acquisitions Intuit has been making in recent years, it’s no surprise they’ve racked up a little debt. Its MailChimp acquisition was the hardest on the business. While debt itself isn’t inherently negative, if we don’t see Intuit making a good effort to reduce its debt, investors should beware.
Since hitting all-time-highs in November, the share price of Intuit has dropped by 36%
Hype Asset of the Day - Conclusion
Intuit is a company with a vision. It is making an effort to acquire companies that will improve its synergy between product lines, generating more revenue and customers from its current users. The company's growth has been excellent and shows no signs of slowing, great news for investors. As they acquire more companies within the sector, it seems Intuit is aiming to become an all-in-one platform that can facilitate any tax-related services. Considering everyone has to pay taxes, this seems like a surefire way to stand strong against the ravishes of time. Overall, Intuit seems like a solid mid to long-term investment and with shares down 25% YTD it’s a great time to build a position for a discount. If you’d like to get more trending stocks straight to your inbox you can check out our premium plans or to learn more about the services offered by HypeIndex head over to our FAQs page.
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