Top 10 Stocks to Buy According to Durable Capital Partners

7. 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.”