Group 1 - Intuit (INTU) has surpassed resistance at the 20-day moving average, indicating a short-term bullish trend [1] - The stock has increased by 5.7% over the past four weeks, suggesting positive momentum [4] - INTU is currently rated as a Zacks Rank 1 (Strong Buy), indicating potential for continued growth [4] Group 2 - There have been 10 upward revisions in earnings estimates for the current fiscal year, with no downward revisions, reflecting strong analyst confidence [4] - The consensus earnings estimate for INTU has also increased, further supporting the bullish outlook [4] - The combination of technical indicators and positive earnings revisions makes INTU a candidate for investors' watchlists [5]

Core Insights - The Driehaus strategy, known as "buy high and sell higher," is highlighted as an effective method for selecting top momentum stocks, with Intuit Inc. (INTU) and Ferrari N.V. (RACE) identified as current picks using this strategy [1][8]. Driehaus Strategy Overview - Richard Driehaus emphasized a preference for investing in stocks that are increasing in price rather than those in decline, which aligns with the philosophy of the American Association of Individual Investors (AAII) that uses the percentage 50-day moving average as a key criterion [2][4]. - The strategy incorporates momentum indicators such as positive relative strength and the percentage change in the 50-day moving average, indicating an uptrend when the stock price is above its 50-day moving average [3][7]. Screening Parameters - Stocks selected for the Driehaus strategy must have a Zacks Rank of 1 (Strong Buy) and a Momentum Score of A or B, with research indicating that these criteria enhance upside potential [5][9]. - Key parameters include: - Last 5-year average EPS growth rates above 2% [7] - Trailing 12-month EPS growth greater than 0 and above industry median [7] - Last four-quarter average EPS surprise greater than 5% [7] - Positive percentage change in the 50-day moving average and relative strength over 4 weeks [7]. Selected Stocks - Intuit Inc. (INTU) has a Momentum Score of B and an average earnings surprise of 12.2% over the last four quarters [8][10]. - Ferrari N.V. (RACE) holds a Momentum Score of A with an average earnings surprise of 10.8% across the last four quarters [8][11].

Investment Rating - The report assigns a "Buy" rating to several companies including Microsoft, Alphabet, Salesforce, ServiceNow, HubSpot, Adobe, and Intuit, indicating a positive outlook on their potential to capture market share in the evolving software landscape driven by agentic AI capabilities [16][18][19]. Core Insights - The report emphasizes that the next phase of AI-driven productivity gains in enterprises will depend on the effectiveness of agents at the software application layer over the next three years, with current examples primarily being basic chatbots [1]. - The total addressable market (TAM) for software is projected to grow by at least 20% by 2030, particularly in customer service software, which is expected to expand by 20-45% compared to a scenario without AI integration [2]. - SaaS companies are well-positioned to capture a significant share of the new agent TAM, with estimates suggesting that agents will constitute over 60% of the total software TAM by 2030 [3]. Summary by Sections Agentic Architectures - The report defines agents as autonomous AI entities capable of performing tasks, making decisions, and adapting to changes in their environment [22]. - It highlights the importance of distinguishing between traditional chatbots and more advanced agents that exhibit agency and context awareness [22]. The Evolving Software TAM - The report discusses the potential for TAM expansion across various software segments, noting that sectors tied to revenue generation and innovation, such as sales and marketing, have higher expansion potential compared to those viewed as cost centers [2][70]. - It provides a detailed analysis of how agents can drive productivity and enhance the software TAM, particularly in customer service and security operations [70]. SaaS Incumbents vs. New Entrants - The competitive landscape is characterized by SaaS incumbents, AI natives, and platform/model vendors, with the report mapping their strengths and weaknesses against key ingredients for success in capturing the agentic profit pool [8][10]. - It notes that while SaaS companies are adapting to the new agentic landscape, they face risks from new competition based on AI-native tech stacks and pricing model compression [8]. Companies, Strategies, and Case Studies - The report identifies key companies to watch, including Microsoft, Alphabet, Salesforce, ServiceNow, HubSpot, Adobe, and Intuit, each with unique strategies to leverage agentic AI capabilities [16][18][19]. - It emphasizes the importance of innovation pace, domain experience, and value-oriented pricing as critical factors for success in the agentic AI market [8][10].

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Intuit (INTU) identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][8]. Group 1: Earnings Growth - Intuit has a historical EPS growth rate of 15.4%, with projected EPS growth of 18.4% for the current year, significantly outperforming the industry average of 11.8% [4]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Intuit stands at 15.7%, exceeding the industry average of 9.4%. The company's annualized cash flow growth rate over the past 3-5 years is 19.2%, compared to the industry average of 10.5% [5][6]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Intuit, with the Zacks Consensus Estimate for the current year increasing by 4.1% over the past month, contributing to its Zacks Rank 1 status [7][8].

Industry Overview - The software industry is experiencing significant growth driven by digital transformation, cloud adoption, and the rise of SaaS models, which provide recurring revenue visibility and scalability for users [1][2] - The global software market is projected to grow at a CAGR of 11.3% from 2025 to 2030, reaching $1,397.31 billion [2] - The Zacks Computer Software industry ranks 30, placing it in the top 12% of over 245 Zacks industries, indicating bright near-term prospects [8][9] Key Trends - Increased spending on AI and cloud technologies is expected to enhance software tools for automation, personalization, and predictive analytics [4] - Cloud computing is becoming a dominant force, with businesses adopting hybrid and multi-cloud environments for flexibility and scalability [5] - The demand for cybersecurity software is rising due to the increasing need to secure cloud platforms amid growing cyber threats [6] Company Highlights Intuit (INTU) - Intuit's shift to a cloud-based subscription model is expected to generate stable revenues, with a focus on embedding AI across key products [19] - In Q3 fiscal 2025, Intuit reported revenues of $7.75 billion, a 15.1% year-over-year increase, with QuickBooks Online revenues up 21% [20] - The Zacks Consensus estimate for Intuit's fiscal 2025 earnings is $20.06 per share, indicating 18.4% year-over-year growth [21] Adobe (ADBE) - Adobe is leveraging generative AI across its portfolio, enhancing its digital marketing services and personalized experiences [25] - In the last reported quarter, Adobe's total revenues were $5.87 billion, an 11% year-over-year increase [26] - The Zacks Consensus estimate for Adobe's fiscal 2025 earnings is $20.60 per share, indicating 11.8% year-over-year growth [28] Pegasystems (PEGA) - Pegasystems is focusing on its GenAI Blueprint solution and Customer Decision Hub, which utilize AI for personalized customer interactions [30] - In Q1 2025, Pegasystems reported revenues of $475.6 million, a 44% year-over-year increase, exceeding the Zacks Consensus Estimate by 33.6% [31] - The Zacks Consensus estimate for Pegasystems' 2025 earnings is $3.61 per share, indicating 19.1% year-over-year growth [31]

Core Insights - Investors should focus on profitable companies to ensure solid returns after covering costs, utilizing accounting ratios to evaluate profitability [1] - Intuit Inc. (INTU), Dave Inc. (DAVE), and Centrus Energy Corp. (LEU) are highlighted as top picks due to their high net income ratios [2][9] Profitability Metrics - The net income ratio measures a company's profitability by showing the percentage of net income relative to total sales revenues, indicating effectiveness in managing expenses [3] - A higher net income ratio suggests a company's ability to generate substantial revenues and manage business functions successfully [3] Screening Criteria - Additional criteria for selecting stocks include Zacks Rank 1 (Strong Buy), trailing 12-month sales and net income growth higher than the industry, and a strong buy percentage rating greater than 70% [4][5] - These parameters narrowed the stock universe from over 7,685 to only 14 candidates [6] Selected Companies - Intuit offers financial management and marketing products, with a 12-month net profit margin of 19.1% [6] - Dave provides financial products via its platform, achieving a 12-month net profit margin of 13.8% [7] - Centrus Energy supplies nuclear fuel components globally, leading with a 12-month net profit margin of 22.6% [9][10]

Core Insights - The markets started 2025 positively but have faced increased volatility due to the Trump administration's tariff plans and geopolitical uncertainties, leading to cautious investor behavior [1] Company Analysis - StoneCo Ltd. (STNE) is projected to have a sales growth rate of 10.9% in 2025 and currently holds a Zacks Rank 1, indicating strong buy potential [12] - Cullen/Frost Bankers, Inc. (CFR) is expected to see a sales growth rate of 4.6% in 2025 and also holds a Zacks Rank 1 [13] - Intuit Inc. (INTU) is anticipated to achieve a sales increase of 15.1% in fiscal 2025, the highest among the highlighted stocks, and has a Zacks Rank 1 [14] - The Mosaic Company (MOS) is expected to grow sales by 11.5% in 2025 and currently has a Zacks Rank 2 [15] Investment Strategy - A focus on companies with strong sales growth and high cash balances is essential for identifying potential investment opportunities [6] - Key screening parameters include a 5-Year Historical Sales Growth (%) greater than the industry average and cash flow exceeding $500 million [6] - Additional metrics for stock selection include a P/S Ratio lower than the industry average, positive sales estimate revisions, operating margin greater than 5%, and a Return on Equity (ROE) greater than 5% [7][8][9]

Company Overview - Intuit is a leading application software company that specializes in providing financial solutions, including accounting, marketing, and tax preparation services [1] - The company was incorporated in 1984 and currently employs approximately 18,200 individuals [1] - Intuit serves nearly 100 million clients globally [1] Investment Insights - The article emphasizes the importance of fundamental analysis for guiding new and inexperienced investors towards achieving long-term financial independence [1]

Market Overview - The AI-driven bull run of 2023 and 2024 faced significant challenges in 2025 due to the Fed's uncertainty regarding rate cuts, recession fears, and competition from a low-cost Chinese AI platform [1] - The technology sector has recently regained momentum, supported by expectations of a U.S.-China trade deal and delays in tariff impositions by the Trump administration [2] Company Highlights Amphenol Corp. (APH) - Amphenol is ranked 1 by Zacks and specializes in AI and machine learning connectivity solutions, including high-density connectors and cables [6][10] - The company benefits from a diversified business model, with strong demand in defense, commercial air, and industrial sectors, contributing to a projected revenue growth rate of 32.3% and earnings growth of 40.7% for the current year [7][10] - The acquisition of Andrew is expected to add approximately $0.09 to earnings in 2025, enhancing its cash flow generation capabilities [8] Intuit Inc. (INTU) - Intuit holds a Zacks Rank of 1, driven by steady revenues from its Online Ecosystem and Desktop segments, particularly through its cloud-based services [11][12] - The company's generative AI tool, "Intuit Assist," aims to provide personalized financial insights, enhancing its product offerings [13] - Expected revenue and earnings growth rates for the next year are 12.1% and 18.4%, respectively, with a recent 4.2% improvement in earnings estimates [14] Okta Inc. (OKTA) - Okta is ranked 2 by Zacks and provides identity management solutions, including Single Sign-On and Adaptive Multi-Factor Authentication [15][16] - The company anticipates revenue and earnings growth rates of 9.4% and 16.7% for the current year, with a 2.8% increase in earnings estimates over the last 30 days [17] Lam Research Corp. (LRCX) - Lam Research, ranked 2, is focused on advanced packaging and memory technologies, benefiting from increased spending in the semiconductor sector [18][19] - The company expects a revenue growth rate of 1.6% and a slight decline in earnings of -0.5% for the next year, with a 0.5% improvement in earnings estimates recently [20] KLA Corp. (KLAC) - KLA is ranked 1 and is experiencing strong demand in the semiconductor industry, particularly in advanced packaging, which is projected to exceed $850 million in 2025 [21][22] - The company has expected revenue and earnings growth rates of 2.5% and 2%, respectively, for the next year, with a recent 0.5% improvement in earnings estimates [23]

Core Insights - Wall Street has rebounded from early April lows and is near record highs, driven by optimism in U.S.-China trade negotiations, easing inflation, and strong corporate earnings, although uncertainty regarding Trump's policies remains [2]. Dividend Investing - Investors are increasingly turning to dividend investing for stable returns, as dividends provide consistent income and can mitigate portfolio volatility during uncertain market conditions [3]. - Stocks with a history of dividend growth are preferred, as they belong to mature companies that are less volatile and offer downside protection through consistent payout increases [5]. Selected Dividend Growth Stocks - Five dividend growth stocks identified as compelling investment options are Intuit Inc. (INTU), Fox Corporation (FOX), Qifu Technology Inc. (QFIN), UGI Corporation (UGI), and Ingredion Incorporated (INGR) [4][10]. - These stocks exhibit consistent dividend growth and strong long-term earnings potential, with positive earnings estimate revisions and solid expected earnings growth for the current fiscal year [10]. Stock Selection Criteria - Criteria for selecting dividend growth stocks include: - 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [7]. - 5-Year Historical Sales Growth greater than zero, reflecting strong revenue growth [8]. - 5-Year Historical EPS Growth greater than zero, showing solid earnings growth history [8]. - Next 3-5 Year EPS Growth Rate greater than zero, indicating expected earnings growth [8]. - Price/Cash Flow less than M-Industry, suggesting undervaluation [9]. - 52-Week Price Change greater than S&P 500, ensuring better performance than the broader market [9]. Company Profiles - **Intuit Inc. (INTU)**: A business and financial software company with an expected earnings growth rate of 18.4% and a Zacks Rank 1 [11]. - **Fox Corporation (FOX)**: A media company with an expected earnings growth rate of 32.4% and a Zacks Rank 2 [13]. - **Qifu Technology Inc. (QFIN)**: A Credit-Tech platform in China with an expected earnings growth rate of 25.3% and a Zacks Rank 2 [14]. - **UGI Corporation (UGI)**: An energy products distributor with an estimated growth rate of 2.29% and a Zacks Rank 2 [16]. - **Ingredion Incorporated (INGR)**: An ingredients solutions provider with an estimated earnings growth rate of 5.2% and a Zacks Rank 2 [17].