10 Best SaaS Stocks to Invest In

2) Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders: 87

Intuit Inc. (NASDAQ:INTU) caters to the SaaS industry as it provides cloud-based software solutions via a SaaS model. Mizuho Securities analyst Siti Panigrahi has reiterated the bullish stance on the company’s shares, giving a “Buy” rating on January 10. This rating is backed by a combination of factors such as Intuit Inc. (NASDAQ:INTU)’s strategic focus on the tax business and potential for double-digit growth in the 2025 fiscal year. The company is focusing on a 2-pronged strategy to ramp up its TurboTax Live service and re-engage with low-end filers, which can fuel significant growth.

Notably, the pricing for TurboTax is largely consistent, but elevated usage of higher-priced services and reduced discounts can fuel its ARPR growth. With businesses and individuals shifting to cloud-based solutions for financial management, accounting, tax, and personal finance needs, Intuit Inc. (NASDAQ:INTU)’s SaaS products such as TurboTax, and QuickBooks Online are well-placed to address the growing demand. The company’s QuickBooks can cater to small businesses and larger companies, enabling them to expand within Intuit Inc. (NASDAQ:INTU)’s ecosystem as they scale up.

The company’s emphasis on operational efficiencies and subscription momentum can fuel continued margin expansion, with healthy operating margin growth expected for FY 2026. Also, the integration of GenAl technology throughout Intuit Inc. (NASDAQ:INTU)’s platform provides a significant opportunity for monetization and service enhancement. On December 19, Deutsche Bank maintained a “Buy” rating with a price target of $750.00. Parnassus Investments, an investment management company, released a Q3 2024 investor letter. Here is what the fund said:

“Intuit Inc. (NASDAQ:INTU) shares fell despite the financial software company posting strong quarterly results. The company’s pricing-dependent long-term guidance concerned investors. However, we continue to believe Intuit’s customer growth and relevant platform will sustain its wide moat and long growth runway.”