Wells Fargo’s Tech Stocks To Beat The S&P: 14 Top AI & Non-AI Stocks

3. Intuit Inc. (NASDAQ:INTU)

Number of Hedge Fund Holders In Q3 2024: 87

NTM EPS Estimate: $19.32

Intuit Inc. (NASDAQ:INTU) is a software-as-a-service company that enables businesses to conduct their daily operations. These include accounting, payroll, credit access, and other operations. Intuit Inc. (NASDAQ:INTU) has been seeing mixed share price performance in 2024 after it disclosed earlier this year that the IRS’ decision to allow direct tax filing of taxes could cost the firm as many as one million users of its Turbotax platform. Since Intuit Inc. (NASDAQ:INTU)’s business and recurring revenue depends on economic activity, the shares soared by 14% after the November 2024 US election. However, they maintained their trend of volatile performance as the shares dropped by 5.7% after Intuit Inc. (NASDAQ:INTU)’s fiscal-second quarter high-end revenue guidance of $3.84 billion missed analyst estimates of $3.87. This was because the firm’s Turbotax promotions and AI offerings are expected to take longer to generate revenue.

Baron Funds mentioned Intuit Inc. (NASDAQ:INTU) in its Q3 2024 investor letter. Here is what the fund said:

“Intuit Inc. (NASDAQ:INTU) is the leading provider of accounting software for small businesses and tax preparation software for individuals and tax professionals. Shares declined due to a slower growth outlook for the Consumer segment (TurboTax) and greater dependence on upselling to drive growth in the Small Business segment (QuickBooks). Nevertheless, the company reported quarterly financial results that exceeded Street expectations and provided fiscal 2025 guidance that called for 12% to 13% revenue growth and 13% to 14% EPS growth. At Intuit’s Investor Day, management expressed confidence in the company’s market positioning and growth potential from selling higher-value services across its two major segments. We continue to own the stock due to Intuit’s strong competitive position and numerous growth opportunities.”