Buy Intuit Inc. (INTU) As Increased Revenue Is Expected From the Death of DOMA

Intuit Inc. (NASDAQ:INTU) has already been surprising to the upside with a 13% increase in revenue last quarter compared to an industry average of less than 3%. This increase in revenues is no fluke. I believe that as U.S. tax law continues to increase in complexity, Intuit stands to keep gaining customers. Another potential source of new customers may come soon as well with the immigration reform bill working its way in Congress. The people affected by immigration reform will have to pay back taxes and start paying federal taxes before they can hope to become U.S. citizens. This would represent a large influx of new customers, especially if Intuit makes a Spanish version of its software.

All in all, I see a bright future for Intuit Inc. (NASDAQ:INTU). The fundamental valuation of the company is good, with a price-to-earnings ratio in line with the general market and revenue growth in the double digits. Events such as the SCOTUS decision to effectively invalidate DOMA should bring in even more revenue with high margins. Congress is unlikely to scrap the current tax code, and it continues to gain in complexity on a regular basis. That complexity guarantees that Intuit will continue to see healthy cash flows as far as the eye can see.

The article Buy Intuit As Increased Revenue Is Expected From the Death of DOMA originally appeared on Fool.com and is written by Erick Santos.

Erick Santos, M.D., Ph.D. has no position in any stocks mentioned. The Motley Fool recommends Automatic Data Processing and Intuit. The Motley Fool owns shares of Intuit. Erick is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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