Entering text into the input field will update the search result below

Intuit: Locking In Returns

Feb. 11, 2019 3:03 PM ETIntuit Inc. (INTU)
Yanni Lodato profile picture
Yanni Lodato


  • Intuit demonstrates formidable business advantages.
  • The company offers strong capital appreciation and elevated dividends.
  • Intuit furnishes a sell rating due to the stock's significant overvaluation; however, the stock makes for a great buy in the event of a pullback.

Source: Google Images

As the manufacturer of various financial products ranging from TurboTax, QuickBooks, ProConnect, and Mint, Intuit (NASDAQ:INTU) captures a lion's share of the financial planning, tax preparation, and payroll market with its intuitive and cost-effective product lines. INTU has remained a Wall Street favorite with overwhelmingly positive coverage. Over the past five years, INTU stock has rocketed 213% in addition to providing investors with a 0.84% dividend yield. With tax season in full swing, investors may gravitate to tax stocks with the hope of realizing a short-term gain. This article will provide my investment thesis on INTU, discussing the company's business strengths, valuation, and overall outlook.

Investment Thesis

With $6 billion in annual revenues, INTU remains the preeminent player in the tax preparation and consumer/small-business financial service industry. The company exhibits a highly diversified financial product portfolio that caters to small business professionals, do-it-yourself consumers, and tax professionals. The majority of INTU's revenue base is derived from small business owners and consumers. INTU offers business owners various online business management solutions - the most popular of which is QuickBooks, an accounting software suite that enables business owners to accept business payments, manage and pay bills, and execute payroll functions. The company's intuitive and easy-to-use financial management products make the lives of business professionals much easier and precipitate strong customer loyalties. The total number of QuickBooks subscribers has increased dramatically over the years, with the user base nearly doubling between Q1/17 and Q1/19, from 2,153 million to 4,093 million users. INTU's consumer segment also accounts for a large portion of the company's total revenues: INTU's highly popular TurboTax product line enables consumers to easily file their taxes from home, maximize deductions, and talk to live CPA professionals regarding their individualized tax questions. INTU now derives 52% of total revenues from the company's small business segment, 42% from

ChartData by YCharts

ChartData by YCharts

This article was written by

Yanni Lodato profile picture
Oracle Investment Research helps individual investors find high-quality stocks with strong competitive advantages suitable for long-term holding. We cover dividend stocks, us stocks, and high growth advantageous risk reward stock opportunities ----------------------------------------------------------------------

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.