3. Intuit Inc. (NASDAQ:INTU)
TTM Net Income: $2.96 Billion
5-Year Net Income CAGR: 13.73%
5-Year Revenue CAGR: 19.14%
Number of Hedge Fund Holders: 82
Intuit Inc. (NASDAQ:INTU) is a leading American software company specializing in financial technology solutions. It offers well-known products such as TurboTax for tax preparation, QuickBooks for small business accounting, Credit Karma for personal finance management, and Mailchimp for email marketing. The company is actively integrating advanced technologies like artificial intelligence to improve user experiences and streamline financial processes.
The company is leveraging its investments in AI to enhance its offerings. Intuit Inc. (NASDAQ:INTU) recently introduced Intuit Assist, a generative AI-powered assistant designed to simplify financial tasks for consumers and small businesses. In fiscal year 2024, TurboTax Live’s revenue increased by 17%, while QuickBooks Live saw its new customer base more than triple. The company also achieved a 20% year-over-year growth in total online payment volume and helped small businesses secure $2.4 billion in financing through QuickBooks Capital. With ongoing investments to digitize the financial experience, Intuit Inc. (NASDAQ:INTU) is well-positioned to deliver innovative solutions that meet the evolving needs of its users.
According to Insider Monkey’s database, INTU has attracted increased interest from institutional investors, with 82 hedge funds holding stakes in the company as of Q2 2024, up from 77 in Q1 2024. This growing confidence reflects the company’s impressive growth trajectory. In the last five years, Intuit Inc. (NASDAQ:INTU) has achieved a revenue growth rate of 19.14% annually, while its net income has grown at an average rate of 13.73% during the same period.
Intuit Inc. (NASDAQ:INTU) ranks among the top 3 on our list of the high-growth software stocks that are profitable in 2024. Analysts are also bullish on INTU. Analysts currently hold a consensus buy rating on the stock and the 1-year median price target of $740.00 set by analysts indicates a potential upside of 19.54% from current levels.
Baron Funds stated the following regarding Intuit Inc. (NASDAQ:INTU) in its “Baron FinTech Fund” second quarter 2024 investor letter:
“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. Klarna, the privately held consumer lending and payments company, is cutting costs by using GenAI assistants to handle two-thirds of customer service chats and reduce its dependency on external marketing agencies. 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.”
