Intuit’s Meteoric Rise
Intuit (INTU) has been a standout in the tech sector, exhibiting remarkable growth over the past year and the last two decades. The tax and financial software giant has consistently outperformed and is now on the cusp of reaching new all-time highs.
Essentials and Beyond
The iconic saying ‘Death and taxes’ finds resonance in Intuit’s innovative TurboTax software – a driving force behind its impressive double-digit revenue growth trajectory. From humble beginnings with under $1 billion in sales in the late 1990s, the company has now soared to over $14 billion in FY23.
Leveraging the pandemic-induced surge, Intuit diversified its software portfolio to include a range of consumer financial services, email marketing, and digital-ad services.
Intuit’s vast customer base of over 100 million across TurboTax, QuickBooks, Credit Karma, and Mailchimp positions it to capitalize on the enduring demand across various economic sectors.
Growth Outlook
Projections suggest Intuit is set to sustain its growth momentum, with estimated revenue growth of 12% in both FY24 and FY25. This would mark a decade of double-digit sales expansion, propelling revenues from $14.37 billion in FY23 to $18.00 billion in FY25.
The company is also anticipated to witness a 14% growth in adjusted 2024 earnings and a further 15% increase in the following year, solidifying its position with a Zacks Rank #2 (Buy).
Performance, Technical Levels & Valuation
Intuit’s stellar performance over the past 20 years is underscored by a remarkable 3,300% increase, outpacing the Zacks Tech sector by a wide margin. With INTU trading at 51.7X forward 12-month earnings, although not a value stock, its consistent growth and market dominance garner confidence from investors.
Technical indicators suggest Intuit is well-positioned for further growth, with the stock trading above key moving averages and displaying potential for record-breaking highs.
Bottom Line
Intuit’s strategic repurchase plan and strong investor sentiment, with 24 out of 29 brokerage recommendations at “Strong Buys,” reflect a positive outlook for the company.
Additionally, the company’s recent dividend hike and sustained growth trajectory further highlight its attractiveness as a growth-oriented investment option.
