Latest news with #INTU
Yahoo
3 days ago
- Business
- Yahoo
Intuit Inc. (INTU): A Bull Case Theory
We came across a bullish thesis on Intuit Inc. (INTU) on Librarian Capital's Substack. In this article, we will summarize the bulls' thesis on INTU. Intuit Inc. (INTU)'s share was trading at $757.22 as of 29th May. INTU's trailing and forward P/E were 61.81 and 33.78 respectively according to Yahoo Finance. A computer programmer working on a holographic digital twin technology software solution. Intuit continues to demonstrate strong operating momentum, reaffirming its position as a high-quality compounder delivering double-digit revenue and earnings growth. In its Q3 FY25 results, released May 22, the company reported accelerating growth across key platforms, particularly TurboTax and Credit Karma, underscoring management's effective execution and diversification. Non-GAAP EPS growth is projected to reach 19% for FY25, with higher-value segments more than offsetting commoditization in legacy offerings. Despite these positive trends, valuation remains the central risk: at $754.45, shares trade at roughly 44x FY25 Non-GAAP EPS and a steep ~100x FY24 free cash flow, once adjusted for share-based compensation. This reflects a current IRR in the high single digits (~7%), though longer-term returns are expected to gravitate toward mid-teens as growth compounds and valuation multiples potentially compress. The market has responded positively, sending shares up over 14% since earnings and 25.7% in the past year. Notably, Fundsmith, a prominent quality-focused U.K. investment firm managing over £20 billion, recently re-initiated a small position in Intuit, after exiting in late 2022, highlighting renewed institutional confidence. While the author maintains a Buy rating, as they have since 2019, they now frame the stock as best suited for long-term investors with a defensive tilt, given elevated multiples. Importantly, the author holds shares personally but has refrained from selling, partly due to large unrealized capital gains. With strong core business momentum, promising segment growth, and disciplined capital allocation, Intuit remains an attractive, albeit richly priced, investment that rewards patient shareholders focused on quality and compounding. Previously, we have covered Intuit Inc. (INTU) before their earnings release wherein we summarized a by Quality Equities on Substack. The author highlighted the company's strong recurring revenue model, high-margin SaaS business, and dominant platforms like TurboTax and QuickBooks. The piece emphasized Intuit's pricing power, strategic expansion into AI and fintech, and projected 20%+ earnings CAGR, positioning it as a rare long-term compounder despite a premium valuation. Since our previous coverage, the stock is up 15.3% as of 29th May. Intuit Inc. (INTU) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 87 hedge fund portfolios held INTU at the end of the first quarter which was 89 in the previous quarter. While we acknowledge the potential of INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Entrepreneur
4 days ago
- Business
- Entrepreneur
3 New Strong Buy Ratings from Top-Rated Analysts: 06/05/2025
Tax season has cooled down, but Intuit (INTU) is heating up — plus, 2 more recent Strong Buy recommendations from top-rated analysts This story originally appeared on WallStreetZen Here's a peek at the latest picks from our most-visited stock screener: Tax season has cooled down, but Intuit ( INTU ) is heating up is heating up Why Flex ( FLEX ) has unanimous Strong Buy ratings has unanimous Strong Buy ratings Is Semtech (SMTC) a fantastic "buy the dip" opportunity? P.S. Get more alerts like this daily … Try WallStreetZen Premium. Investors often come across the phrase "buy the dip" — but with Semtech Corp, it'd be more apt to say "buy the plunge." After an unexpected setback when it comes to revenue from a crucial segment, SMTC stock has lost significant value since the beginning of the year. However, there's an odd dissonance at play — while analysts have cut their price targets accordingly, they're still bullish, and see plenty of upside — particularly at the current, reduced valuation. Zen Rating: B (Buy) — see full analysis > Recent Price: $37.10 — get current quote > Max 1-year forecast: $68.00 Why we're watching: At present, 8 Wall Street researchers issue ratings for SMTC stock — 4 have deemed it a Strong Buy, 3 have given it a Buy rating, and 1 analyst rates the stock a Hold. There are currently no Sell or Strong Sell ratings. See the ratings The average price forecast of $55.75 implies a 55.9% upside from the current price of Semtech shares. Stifel Nicolaus researcher Tore Svanberg (a top 4% rated analyst) maintained a Strong Buy rating after the company's Q1 2026 earnings, and upped his price target from $42 to $45. Svanberg summarized the quarter with "in-line results and in-line Q2 guidance." Looking ahead, the analyst said that in spite of the near-term ACC business "air pocket," Semtech's next-gen CopperEdge ACC products continue to generate significant interest, infrastructure momentum continues, and the company's profitability is improving. Benchmark's Cody Acree (a top 9% rated analyst) also doubled down on a Strong Buy rating following the quarterly report — and reiterated a Street-high price target of $68. Once SMTC's performance across our 7 Component Grade ratings are squared, the stock ranks in the top 9% of equities on the whole — placing it firmly in the upper end of stocks with a Zen Rating of B, equivalent to a Buy. Semtech does exceptionally well in two areas — Financials, where it ranks in the top 5% of stocks, and Growth, where it ranks in the top 2%. (See all 7 Zen Component Grades here >) Flex is a company that wears many hats — as it helps design, build, and deliver products and entire supply chains across a wide variety of industries, including automotive, healthcare, and even cloud computing. At present, the business is reorienting itself toward high-growth and high-margin areas — chiefly data centers, and it seems to be paying off. Zen Rating: A (Strong Buy) — see full analysis > Recent Price: $42.33 — get current quote > Max 1-year forecast: $52.00 Why we're watching: In a clear cut case of overwhelmingly positive coverage, 7 analysts issue ratings for FLEX — all 7 rate the stock a Strong Buy. See the ratings Following the company's Q4 and FY 2025 earnings call, two top-rated analysts doubled down on their bullish coverage. Justin Patterson of KeyBanc (a top 7% rated analyst) maintained a Strong Buy rating and increased his price target on FLEX shares from $35 to $44. According to Patterson, the stock was up post-print because the quarter beat consensus and management's FY 2026 guidance was higher on EPS, although lower on revenue. Overall, the analyst argued that Q4 "generally surpassed lowered expectations, even though datacenter/AI headlines and narratives have changed recently." Barclays researcher George Wang (a top 11% rated analyst) also reiterated a Strong Buy rating, and increased his price forecast from $49 to $50. "The company delivered a solid quarter, and its positive mix shift is bearing fruit," Wang told investors. Flex ranks in the top 4% of equities on the whole , giving it an overall Zen Rating of A. , giving it an overall Zen Rating of A. For a better idea as to why FLEX ranks so highly, we have to take a closer look at its Component Grade ratings. When it comes to Safety, the stock ranks in the top 17%. In terms of Sentiment, it ranks in the top 12%. However, the Artificial Intelligence rating steals the show — in this regard, FLEX ranks in the top 10% of the more than 4,600 equities that we track. (See all 7 Zen Component Grades here >) Ever used TurboTax? You're one of Intuit's customers. For decades, this business has dominated the financial and compliance software market. Despite declining share prices, the company maintains a strong checkbook and enjoys confidence from Wall Street — which means it also merits a closer look. Zen Rating: B (Buy) — see full analysis > Recent Price: $752.04 — get current quote > Max 1-year forecast: $875.00 Why we're watching: INTU has received a lot of attention from Wall Street — the stock currently has 18 ratings, divided between 11 Strong Buys, 6 Buys, and 1 Hold. See the ratings Following the company's Q3 2025 earnings, Michael Turrin of Wells Fargo (a top 24% rated analyst) reissued a Strong Buy rating, and hiked his price target from $775 to $825. Turrin told readers that the inflection in Live was the catalyst behind the tax outperformance that dominated the print. Live's sustainability into next year was reaffirmed by management, the analyst said, "and QuickBooks' mission criticality continues to shine through." In addition, Bank of America researcher Brad Sills (a top 5% rated analyst) also doubled down on a prior Strong Buy rating, and upped his price target from $730 to a Street-high $875. A successful tax season spearheaded the company's "strong Q3," supported by strength across the company's other lines of business, Sills told readers. The analyst added that the results from this tax season show that TurboTax has effectively shifted its focus to the assisted category, where it is expected to sustainably drive growth. Further, Sills noted that Intuit's Business Solutions unit, which includes QuickBooks, recorded a 19.4% growth rate, which "nicely exceeded" their forecast of 18%, indicating that demand for the product is resilient. Intuit shares rank in the top 8% of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. of equities based on a big-picture overview of 115 proprietary factors that correlate with outsized returns, earning it an overall B (Buy) Zen Rating. Overwhelmingly positive analyst coverage, a significant degree of insider buying, and a string of positive earnings surprises have come together to give INTU a Sentiment Component Grade rating in the top 6% of stocks. However, INTU ranks even more highly in terms of Financials and Artificial Intelligence — in the top 4% and top 1%, respectively. (See all 7 Zen Component Grades here >) What to Do Next?
Yahoo
6 days ago
- Business
- Yahoo
The Zacks Analyst Blog Highlights Intuit, Amphenol, Broadcom, Twilio and Ubiquiti
Chicago, IL – June 3, 2025 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Intuit Inc. INTU, Amphenol Corp. APH, Broadcom Inc. AVGO, Twilio Inc. TWLO and Ubiquiti Inc. UI. Wall Street's popular adages are not matching this year. April is historically known for being favorable to investors. But this year, April ended on a mixed note after severe volatility. For May, the popular adage is 'Sell and Go Away.' However, last month turned out highly successful for U.S. stock markets. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 3.9%, 6.2% and 9.6%, respectively, in May. The tech-heavy Nasdaq Composite and the broad-market index — the S&P 500 — recorded their best months since November 2023. May's turnaround was primarily attributable to the solid performance of the technology sector. In addition to the Nasdaq Composite, the Technology Select Sector SPDR, one of the 11 broad sectors of the S&P 500 Index, surged more than 10%. At this stage, we recommend five technology bigwigs with a favorable Zacks Rank that have provided double-digit returns in the past month for investment. These stocks are: Intuit Inc., Amphenol Corp., Broadcom Inc., Twilio Inc. and Ubiquiti Inc. Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Intuit Zacks Rank #1 Intuit has been benefiting from steady revenues from the Online Ecosystem and Desktop business segments. INTU's strong momentum in Online Services revenues is driven by the solid performance of Mailchimp, payroll and Money, which includes payments, capital and bill pay. INTU's Credit Karma business is benefiting from strength in Credit Karma Money, credit cards, auto insurance and personal loans. INTU's strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. Cloud is a flourishing part of the technology space and has been gaining momentum in recent years. Intuit's generative artificial intelligence (AI)-powered "Intuit Assist," provides financial assistant, enabling personalized insights and recommendations, integrated into products like TurboTax, Credit Karma, QuickBooks, and Mailchimp, aiming to fuel small business and personal financial success. Intuit has an expected revenue and earnings growth rate of 14.8% and 18%, respectively, for the current year (ending July 2025). The Zacks Consensus Estimate for current-year earnings has improved 3.7% in the last 30 days. Amphenol Zacks Rank #1 Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance. Amphenol benefits from a diversified business model. APH's strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expansion of spending on both current and next-generation defense technologies bodes well for APH's top-line growth. Apart from Defense, APH's prospects ride on strong demand for its solutions across Commercial Air, Industrial and Mobile devices. The Andrew acquisition is expected to add roughly $0.09 to earnings in 2025. APH's diversified business model lowers the volatility of individual end markets and geographies. Its strong cash-flow-generating ability is noteworthy. Amphenol has an expected revenue and earnings growth rate of 32.3% and 40.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% in the last 30 days. Broadcom Zacks Rank #2 Broadcom has been benefiting from strong demand for its networking products and custom AI accelerators (XPUs). Strong demand for AVGO's application-specific integrated chips, designed to support AI and machine learning, aids top-line growth. AVGO expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of the fiscal second quarter, roughly 70% of Broadcom's largest 10,000 customers have adopted VMware Cloud Foundation. AVGO's expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. AVGO's XPUs are necessary for training generative AI models, and they require complex integration of compute, memory, and I/O capabilities to achieve the necessary performance at lower power consumption and cost. AVGO's next-generation XPUs are in 3 nanometers and will be the first of their kind to market in that process node. Broadcom remains on track for volume shipment of these XPUs to its hyperscale customers in the second half of fiscal 2025. AVGO sees massive opportunities in the AI space as specific hyperscalers have started to develop their own XPUs. Broadcom believes that by 2027 each of its three hyperscalers will deploy 1 million XPU clusters across a single fabric. The Serviceable Addressable Market for XPUs and networks is expected to be between $60 billion and $90 billion in fiscal 2027 alone. Broadcom has an expected revenue and earnings growth rate of 21.2% and 36.1%, respectively, for the current year (ending October 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last seven days. Twilio Zacks Rank #2 Twilio is a leading provider of cloud communications Platform-as-a-Service in the United States and internationally. TWLO is focusing on generative AI offerings to tap the growing opportunities in this space. In this regard, TWLO launched Customer AI technology in June 2023, which powerfully combines customer engagement platform data, generative and predictive AI, and large language models (LLMs) to unlock stronger customer relationships for brands. TWLO is integrating generative AI capabilities across its platform and every customer touch point. The company believes that by training LLMs for customers with their data inside its Segment customer data platform, Twilio will be able to help customers enter the AI race multiple steps ahead of their peers. TWLO has also partnered with Alphabet Inc. (GOOGL) for Google Cloud to integrate generative AI into the Twilio Flex customer engagement platform. Twilio's initiative to integrate generative and predictive AI technology across its platform is likely to boost its revenue growth over the long-run. Twilio enables companies to create personalized, customer-aware experiences powered by OpenAI. Through this integration, Twilio customers will be able to use OpenAI's GPT-4 model to power new generative capabilities in Twilio Engage, its multichannel marketing solution built on the Segment Customer Data Platform. Twilio has an expected revenue and earnings growth rate of 7.8% and 22.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.1% in the last 30 days. Ubiquiti Zacks Rank #2 Ubiquiti's excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. UI's operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community). Ubiquiti boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, UI is committed to reducing its operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community. Ubiquiti has an expected revenue and earnings growth rate of 1.7% and 10.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 60 days. Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Zacks Investment Research 800-767-3771 ext. 9339 support@ Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Ubiquiti Inc. (UI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
02-06-2025
- Business
- Yahoo
Tech Shines as Markets Defy "Sell in May and Go Away" Adage: 5 Picks
Wall Street's popular adages are not matching this year. April is historically known for being favorable to investors. But this year, April ended on a mixed note after severe volatility. For May, the popular adage is 'Sell and Go Away.' However, last month turned out highly successful for U.S. stock markets. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — were up 3.9%, 6.2% and 9.6%, respectively, in May. The tech-heavy Nasdaq Composite and the broad-market index — the S&P 500 — recorded their best months since November 2023. May's turnaround was primarily attributable to the solid performance of the technology sector. In addition to the Nasdaq Composite, the Technology Select Sector SPDR (XLK), one of the 11 broad sectors of the S&P 500 Index, surged more than 10%. At this stage, we recommend five technology bigwigs with a favorable Zacks Rank that have provided double-digit returns in the past month for investment. These stocks are: Intuit Inc. INTU, Amphenol Corp. APH, Broadcom Inc. AVGO, Twilio Inc. TWLO and Ubiquiti Inc. UI. Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The chart below shows the price performance of our five picks in the past month. Image Source: Zacks Investment Research Zacks Rank #1 Intuit has been benefiting from steady revenues from the Online Ecosystem and Desktop business segments. INTU's strong momentum in Online Services revenues is driven by the solid performance of Mailchimp, payroll and Money, which includes payments, capital and bill pay. INTU's Credit Karma business is benefiting from strength in Credit Karma Money, credit cards, auto insurance and personal loans. INTU's strategy of shifting its business to a cloud-based subscription model will help generate stable revenues over the long run. Cloud is a flourishing part of the technology space and has been gaining momentum in recent years. Intuit's generative artificial intelligence (AI)-powered "Intuit Assist," provides financial assistant, enabling personalized insights and recommendations, integrated into products like TurboTax, Credit Karma, QuickBooks, and Mailchimp, aiming to fuel small business and personal financial success. Intuit has an expected revenue and earnings growth rate of 14.8% and 18%, respectively, for the current year (ending July 2025). The Zacks Consensus Estimate for current-year earnings has improved 3.7% in the last 30 days. Zacks Rank #1 Amphenol provides connectivity solutions using AI and ML (machine learning) technologies. It provides AI-powered high-density, high-speed connectors and cables, and interconnect systems optimized for signal integrity and thermal performance. Amphenol benefits from a diversified business model. APH's strong portfolio of solutions, including high-technology interconnect products, is a key catalyst. Expansion of spending on both current and next-generation defense technologies bodes well for APH's top-line growth. Apart from Defense, APH's prospects ride on strong demand for its solutions across Commercial Air, Industrial and Mobile devices. The Andrew acquisition is expected to add roughly $0.09 to earnings in 2025. APH's diversified business model lowers the volatility of individual end markets and geographies. Its strong cash-flow-generating ability is noteworthy. Amphenol has an expected revenue and earnings growth rate of 32.3% and 40.7%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3.1% in the last 30 days. Zacks Rank #2 Broadcom has been benefiting from strong demand for its networking products and custom AI accelerators (XPUs). Strong demand for AVGO's application-specific integrated chips, designed to support AI and machine learning, aids top-line growth. AVGO expects second-quarter fiscal 2025 AI revenues to jump 44% year over year to $4.4 billion. The acquisition of VMware has benefited Infrastructure software solutions. As of the fiscal second quarter, roughly 70% of Broadcom's largest 10,000 customers have adopted VMware Cloud Foundation. AVGO's expanding AI portfolio, along with a rich partner base, reflects solid top-line growth potential. AVGO's XPUs are necessary for training generative AI models, and they require complex integration of compute, memory, and I/O capabilities to achieve the necessary performance at lower power consumption and cost. AVGO's next-generation XPUs are in 3 nanometers and will be the first of their kind to market in that process node. Broadcom remains on track for volume shipment of these XPUs to its hyperscale customers in the second half of fiscal 2025. AVGO sees massive opportunities in the AI space as specific hyperscalers have started to develop their own XPUs. Broadcom believes that by 2027 each of its three hyperscalers will deploy 1 million XPU clusters across a single fabric. The Serviceable Addressable Market for XPUs and networks is expected to be between $60 billion and $90 billion in fiscal 2027 alone. Broadcom has an expected revenue and earnings growth rate of 21.2% and 36.1%, respectively, for the current year (ending October 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.2% in the last seven days. Zacks Rank #2 Twilio is a leading provider of cloud communications Platform-as-a-Service in the United States and internationally. TWLO is focusing on generative AI offerings to tap the growing opportunities in this space. In this regard, TWLO launched Customer AI technology in June 2023, which powerfully combines customer engagement platform data, generative and predictive AI, and large language models (LLMs) to unlock stronger customer relationships for brands. TWLO is integrating generative AI capabilities across its platform and every customer touch point. The company believes that by training LLMs for customers with their data inside its Segment customer data platform, Twilio will be able to help customers enter the AI race multiple steps ahead of their peers. TWLO has also partnered with Alphabet Inc. (GOOGL) for Google Cloud to integrate generative AI into the Twilio Flex customer engagement platform. Twilio's initiative to integrate generative and predictive AI technology across its platform is likely to boost its revenue growth over the long-run. Twilio enables companies to create personalized, customer-aware experiences powered by OpenAI. Through this integration, Twilio customers will be able to use OpenAI's GPT-4 model to power new generative capabilities in Twilio Engage, its multichannel marketing solution built on the Segment Customer Data Platform. Twilio has an expected revenue and earnings growth rate of 7.8% and 22.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 7.1% in the last 30 days. Zacks Rank #2 Ubiquiti's excellent global business model, which is flexible and adaptable to evolving changes in markets, helps it to beat challenges and maximize growth. UI's operating model is backed by a rapidly growing and highly engaged community of service providers, distributors, value-added resellers, systems integrators and corporate IT professionals (referred to as the Ubiquiti Community). Ubiquiti boasts a proprietary network communication platform that is well-equipped to meet end-market customer needs. In addition, UI is committed to reducing its operational costs by using a self-sustaining mechanism for rapid product support and dissemination of information by leveraging the strength of the Ubiquiti Community. Ubiquiti has an expected revenue and earnings growth rate of 1.7% and 10.8%, respectively, for the current year (ending June 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 60 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH) : Free Stock Analysis Report Intuit Inc. (INTU) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report Twilio Inc. (TWLO) : Free Stock Analysis Report Ubiquiti Inc. (UI) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-06-2025
- Business
- Yahoo
Is It Worth Investing in Intuit (INTU) Based on Wall Street's Bullish Views?
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Intuit (INTU). Intuit currently has an average brokerage recommendation (ABR) of 1.40, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 30 brokerage firms. An ABR of 1.40 approximates between Strong Buy and Buy. Of the 30 recommendations that derive the current ABR, 24 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 80% and 6.7% of all recommendations. Check price target & stock forecast for Intuit here>>>The ABR suggests buying Intuit, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. In spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. Looking at the earnings estimate revisions for Intuit, the Zacks Consensus Estimate for the current year has increased 4.1% over the past month to $19.98. Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Intuit. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, the Buy-equivalent ABR for Intuit may serve as a useful guide for investors. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
