We recently published a list of Top 10 Stocks to Buy According to Durable Capital Partners. In this article, we are going to take a look at where Intuit Inc. (NASDAQ:INTU) stands against other top stocks to buy according to Durable Capital Partners.
Durable Capital Partners is a Maryland-based hedge fund management firm founded in the second quarter of 2019 by Henry Ellenbogen. The firm primarily follows a long-term equity investment strategy, with a focus on early-stage and durable growth in small- and mid-cap equities across public markets. Ellenbogen, who serves as the Managing Partner and Chief Investment Officer, leads the firm’s investment approach.
Ellenbogen established Durable Capital Partners in 2019 and currently holds the roles of Managing Partner and Chief Investment Officer. Before founding Durable, he spent nearly two decades at T. Rowe Price Associates, Inc., where he served as Vice President and Chief Investment Officer for U.S. Equity Growth. During his tenure, he led the U.S. Small-Cap Growth Equity Strategy and managed the New Horizons Fund. Additionally, he was an active member of the U.S. Equity Steering Committee and the Corporate Governance Committee for U.S. Equity.
Between 2001 and 2019, Ellenbogen spearheaded private market investments in several high-profile companies. His leadership at the New Horizons Fund contributed to its recognition with multiple industry awards. Notably, the fund received Investor’s Business Daily’s Best Mutual Funds Award in 2018 across categories such as U.S. Diversified Equity Funds, Growth Funds, and Small-Cap Funds. Additionally, it earned the Thomson Reuters Lipper Fund Award for Best Small-Cap Growth Fund over a ten-year period (2017), a five-year period (2016), and both five- and ten-year periods (2013). Prior to his investment career, Ellenbogen served as Chief of Staff for U.S. Representative Peter Deutsch and gained experience as a Summer Associate at Goldman Sachs.
Academically, he graduated magna cum laude from Harvard College with a degree in History and Science. He later earned a J.D. from Harvard Law School and an MBA from Harvard Business School, where he was recognized as a Baker Scholar. Additionally, he has taught as an adjunct professor at New York University’s Graduate School of Politics. Ellenbogen is a member of the Barron’s Roundtable and contributes to the Investment Committee of the Smithsonian Institution. He also serves as Chairman of the Board for The Posse Foundation.
According to its most recent 13F filing for the fourth quarter of 2024, Durable Capital Partners reported $12.26 billion in managed 13F securities, with its top 10 holdings accounting for 47.59% of its portfolio.
Our Methodology
The stocks discussed below were picked from Durable Capital Partners’s Q4 2024 13F filings. They are compiled in the ascending order of the hedge fund’s stake in them as of December 31, 2024. To assist readers with more context, we have included the hedge fund sentiment regarding each stock using data from over 1,000 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders as of Q4: 89
Durable Capital Partners’ Equity Stake: $528.27 Million
Intuit Inc. (NASDAQ:INTU), a global leader in financial software solutions, is a major player in the industry with a market capitalization of $165 billion. Headquartered in Mountain View, California, the company is renowned for its widely used financial products, including TurboTax, QuickBooks, and Credit Karma. Following the release of its fiscal Q2 2025 earnings report, Intuit’s stock surged 5% as it outperformed analyst expectations across key financial metrics. The company reported earnings per share (EPS) of $3.32, significantly exceeding analyst estimates of $2.58. Revenue for the quarter totaled $3.96 billion, surpassing projections of $3.83 billion and marking a 17% increase year-over-year. Management highlighted the company’s increasing use of artificial intelligence (AI) to enhance customer experience and operational efficiency. Additionally, the board approved a quarterly dividend of $1.04 per share, reflecting a 16% year-over-year increase, with payment scheduled for April 18, 2025.
For fiscal year 2025, Intuit Inc. (NASDAQ:INTU) maintained a positive outlook, forecasting revenue between $18.16 billion and $18.35 billion, representing a 12-13% increase. Operating income is expected to grow between 28% and 30%, while diluted EPS is projected to range from $19.16 to $19.36, reflecting a 13-14% rise. The company also provided Q3 2025 guidance, estimating revenue between $7.55 billion and $7.60 billion, with EPS forecasted between $10.89 and $10.95.
On March 13, 2025, Mizuho Securities reiterated its Outperform rating on Intuit Inc. (NASDAQ:INTU), maintaining a price target of $765. Analysts noted that the stock is currently trading slightly below its Fair Value, with price targets ranging from $530 to $860. The reaffirmed confidence in the company followed a series of investor meetings with CEO Sasan Goodarzi, during which the strategic importance of Intuit’s AI-driven expert platform was emphasized. The discussions highlighted the company’s continued focus on innovation and the expanding role of artificial intelligence in enhancing its product offerings, reinforcing Intuit’s position as a top stock to buy according to Durable Capital Partners.
Parnassus Growth Equity Fund stated the following regarding Intuit Inc. (NASDAQ:INTU) in its Q3 2024 investor letter:
“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.”
Overall, INTU ranks 7th on our list of top stocks to buy according to Durable Capital Partners. While we acknowledge the potential for INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than INTU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
