INTU - Low Yield High Valuation - Why I'm Still Bullish On Intuit
2024-05-27 04:33:58 ET
Summary
- Intuit has averaged 17.6% annual returns since 2003, but recently saw an 8% stock drop after losing 1 million free TurboTax users.
- Despite this, Intuit's revenue grew 12%, driven by high-value customers and AI innovations, mitigating competition fears.
- Strong financial health and international expansion bolster Intuit's growth. The company has robust cash reserves, low debt, and consistent dividend growth.
- However, high valuation and competition risks suggest caution. A Buy rating is maintained, but gradual investment is advised to navigate short-term headwinds.
Introduction
It's time to talk about one of the biggest compounders on the stock market.
Intuit Inc. ( INTU ) has returned 17.6% per year since August 2003, as proven by the chart below.
FAST Graphs - INTU Stock Price
Compounding wealth at 17.6% annually would have turned a $10 thousand investment into $256 thousand within 20 years!...
Low Yield, High Valuation - Why I'm Still Bullish On Intuit