10 Best Fundamental Stocks to Invest In

5) Intuit Inc. (NASDAQ:INTU)

10-Year Revenue Growth Rate: ~14.4%

10-Year Net Income Growth Rate: ~12.5%

Number of Hedge Fund Holdings: 82

Intuit Inc. (NASDAQ:INTU) offers financial management, compliance, and marketing products and services in the US.

Intuit Inc. (NASDAQ:INTU) focuses on small and medium-sized businesses instead of larger businesses. This niche focus places it well to succeed in an industry where AI and automation capabilities are changing the landscape. Intuit Inc. (NASDAQ:INTU)’s flagship products, such as TurboTax, QuickBooks, and Credit Karma, are now household names in financial management solutions. The company’s successful transition to a subscription-based model should continue to aid its long-term growth trajectory.

This shift has provided Intuit Inc. (NASDAQ:INTU) with a more predictable revenue stream and enhanced customer retention. The company remains the frontrunner at integrating AI into its products, mainly through its GenAI initiatives. It sees significant potential in utilizing AI to automate services in tax preparation and SMB accounting.

Wall Street analysts believe that GenAI is a monetizable opportunity, which can enhance customer onboarding experiences, enable higher-priced offerings, and improve customer retention. The roll-out of Intuit Assist, which is powered by GenAI technology, should expand Intuit Inc. (NASDAQ:INTU)’s market opportunity and fuel innovation throughout its product suite. GenAI is expected to make the company’s products more intuitive and easier to use. This should increase customer satisfaction and retention.

Analysts at BMO Capital Markets upped their target price on the shares of Intuit Inc. (NASDAQ:INTU)  from $700.00 to $760.00, giving an “Outperform” rating on 23^rd August. Baron Funds, an investment management company, released its Q2 2024 investor letter. Here is what the fund said:

“GenAI has captured the market’s imagination, but it’s still very early in the user adoption of this new technology, and the financial payoff from investments into GenAI models and infrastructure is still unknown. We are focused on investing in strong businesses that will be improved by AI, even if this improvement takes time to materialize. Intuit Inc. (NASDAQ:INTU) has been rolling out Intuit Assist, a GenAI powered digital assistant, across its product lines to help Credit Karma users select new credit cards, QuickBooks customers forecast cash flow, Mailchimp customers create targeted email marketing campaigns, and TurboTax customers understand changes in their tax returns from the prior year. We consider these GenAI advancements to be evolutionary rather than revolutionary, but we continue to closely monitor the impact of new technologies on the fintech industry.”