Is Intuit A Good Stock to Buy?

Page 1 of 2

Intuit Inc. (NASDAQ:INTU), a $19 billion market cap software company, offers business and financial management products for a variety of functions. It is best known for QuickBooks and TurboTax, but other products cover personal finance, payroll software, and online marketing. Year to date Intuit’s stock price is up 18%, in line with the NASDAQ index.

Intuit Inc. (NASDAQ:INTU)

The company released its 10-Q for the first quarter of its fiscal year (the quarter ended in October) last month. Net revenue for the quarter was up 13%, and net losses came in considerably lower than the same period a year ago. This isn’t incredibly relevant- this is typically a soft quarter for Intuit Inc., with the majority of its earnings coming in the fiscal quarter ending in April and most of the rest coming in the fiscal quarter ending in January. It’s possible that the relatively good quarter does signal better numbers over the next several months as well, but we wouldn’t depend on that.

Intuit Inc. trades at 23 times trailing earnings, a valuation at which we’d want to see good growth on the bottom line. Wall Street analysts do see better numbers ahead: consensus is for $2.82 in earnings per share for the crucial April quarter, which would be a 12% increase from what the company earned in the same quarter of the last fiscal year. The year as a whole is expected to result in $3.33 in EPS, implying a current-year P/E multiple of 19; the forward P/E, based on earnings for the fiscal year ending in July 2014, is 17. It’s possible that Intuit will get to these improvements in earnings per share in part through buybacks: repurchasing activity has been somewhat limited recently, but the company has reported that a large buyback program is authorized and it did report about $560 million in cash, cash equivalents, and investments on its balance sheet. However, current assets were only slightly higher than current liabilities. We’d also expect Intuit to be less active in using its cash until it has its actual results from its peak quarter.

Page 1 of 2

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!