Core Insights - Intuit Inc. is performing relatively well during the tax season despite significant market volatility, benefiting from its diversified revenue streams between consumer and business segments [1] Company Performance - The company is the parent of TurboTax and Credit Karma, indicating a strong position in the financial software market [1] Industry Context - The article highlights the importance of diversification in revenue streams for companies in the technology and financial sectors, particularly during volatile market conditions [1]

Group 1 - The IRS tax filing deadline is approaching on April 15, and many individuals, particularly younger adults, are unaware of this deadline [1][2] - TurboTax offers Full Service options to assist individuals in filing their taxes, helping to identify deductions and credits that may be overlooked [2] - The Earned Income Tax Credit can provide substantial benefits, with families having three children eligible for up to $7,830, yet one in five people miss this credit [3] Group 2 - Parents can claim valuable credits for children, including the Child Tax Credit up to $2,000 and the Child and Dependent Care Credit up to $2,100 for two or more children [3] - Educational credits are available, such as the American Opportunity Tax Credit up to $2,500 for the first four years of college and the Lifetime Learning Credit up to $2,000 for any college course [3] - The Standard Deduction has been adjusted for inflation, now set at $14,600 for single filers, $29,200 for married filing jointly, and $21,900 for head of household [3]

Company Overview - Intuit (INTU) closed at $613.78, showing a slight decline of -0.03% from the previous day's closing price, underperforming the S&P 500's gain of 0.38% on the same day [1] - Over the past month, Intuit's shares have increased by 2.15%, while the Computer and Technology sector has decreased by 8.94% and the S&P 500 has lost 5.59% [1] Upcoming Earnings - Intuit is expected to report earnings per share (EPS) of $11.01, representing an increase of 11.44% from the same quarter last year [2] - The consensus estimate for revenue is projected at $7.56 billion, reflecting a 12.19% rise compared to the equivalent quarter last year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates predict earnings of $19.31 per share and revenue of $18.3 billion, indicating increases of +13.99% and +12.4% respectively from the previous year [3] - Recent modifications to analyst estimates for Intuit indicate a positive outlook, as positive revisions suggest analyst optimism regarding the company's business and profitability [3] Stock Performance and Valuation - The Zacks Rank system, which evaluates estimate changes, currently ranks Intuit at 3 (Hold), with a recent 0.05% decline in the Zacks Consensus EPS estimate [5] - Intuit's Forward P/E ratio stands at 31.79, which is a premium compared to the industry average Forward P/E of 24.11 [6] - The company has a PEG ratio of 2.19, compared to the Computer - Software industry's average PEG ratio of 2.04 [6] Industry Context - The Computer - Software industry, part of the broader Computer and Technology sector, holds a Zacks Industry Rank of 70, placing it in the top 29% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - The tax return deadline is approaching on April 15, 2025, and experts recommend filing as soon as possible due to confusion around IRS layoffs and potential new tax proposals [1][2] - The average tax refund for the last tax season was over $3,000, with the latest IRS statistics showing a 5.7% increase in refunds compared to the previous year, averaging $3,324 [2] - Intuit TurboTax offers a fast and stress-free tax filing solution, with thousands of TurboTax Live experts available to assist both virtually and in person [3] Group 2 - The IRS will maintain essential operations throughout the tax season, indicating that there is no reason to delay filing taxes [1] - The current economic concerns and rising costs further emphasize the importance of filing taxes promptly to receive refunds sooner [2] - TurboTax Full Service allows users to work with the same tax expert as the previous season, enhancing customer experience [3]

Core Insights - The urgency to file taxes is emphasized due to the approaching deadline of April 15, 2025, with experts advising against delays caused by IRS layoffs or potential new tax proposals [1][4] - The IRS is expected to maintain essential operations throughout the tax season, ensuring that taxpayers can file without concern for service disruptions [1] - The average tax refund for the last season was reported to be over $3,000, with a 5.7% increase in refunds compared to the previous year, averaging $3,324 [2] Company Insights - Intuit TurboTax offers a fast and stress-free tax filing solution, providing options for both self-filing and expert assistance [3] - TurboTax Live experts are available to assist taxpayers virtually or in person, ensuring a comprehensive service experience [3] - Returning customers who used TurboTax Full Service last season can work with the same tax expert again this year, enhancing customer satisfaction and continuity [3]

The wide moat investment strategy implies investing in companies that not only lead their industries today but are also strategically fortified to dominate in the future. The business models of these companies possess durable competitive advantages that shield them from competitors. This strategy isn't just about short-term gains, but securing a portfolio of stocks that can weather economic storms and continue to deliver stable and predictable returns.This investment strategy features companies with unique ...

The concept of a wide moat refers to companies that possess strong, lasting competitive advantages that insulate them from competition and allow them to sustain long-term profitability. The term, popularized by Warren Buffett, likens a company’s market position to a medieval castle surrounded by a wide moat — difficult for rivals to cross and attack.Among the companies that exemplify wide economic moats are Taiwan Semiconductor Manufacturing Company Limited (TSM) , NVIDIA Corporation (NVDA) , Intuit Inc. (I ...

Core Viewpoint - JP Morgan analyst Mark Murphy upgraded Intuit Inc from Neutral to Overweight and raised the price target from $640 to $660, citing the company's dependable and innovative cloud platform serving various customer segments [1] Company Performance - Intuit's stock has underperformed, trading below levels from approximately 3.5 years ago, with a decline of about 14% compared to the S&P 500's increase of 23% [2][3] - The company faced challenges including a growth reset for Credit Karma and a perceived loss of TurboTax market share, leading to a reduction in long-term growth targets for these businesses [4] Market Position and Valuation - The updated price target reflects a shift in peer group multiples, with Intuit trading at a premium due to its less competitive core markets and higher perceived value of its QuickBooks franchise [5][6] - Murphy projected third-quarter revenue of $7.51 billion and adjusted EPS of $10.92, indicating a positive outlook despite recent challenges [6]

Core Viewpoint - Intuit (INTU) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Intuit suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on four factors related to earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains a balanced proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, ensuring that only the top 5% receive a 'Strong Buy' rating [9]. Specifics on Intuit's Earnings Estimates - For the fiscal year ending July 2025, Intuit is expected to earn $19.33 per share, reflecting a 14.1% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Intuit has increased by 0.9%, indicating positive sentiment among analysts [8]. Conclusion - The upgrade of Intuit to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks in terms of estimate revisions, suggesting potential for higher stock movement in the near term [10].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Intuit (INTU), and suggests that while the average brokerage recommendation (ABR) indicates a positive outlook, investors should be cautious and validate these recommendations with other tools like Zacks Rank [1][4]. Group 1: Brokerage Recommendations - Intuit has an average brokerage recommendation (ABR) of 1.59, which is between Strong Buy and Buy, based on recommendations from 29 brokerage firms [2]. - Out of the 29 recommendations, 21 are Strong Buy, accounting for 72.4%, while one is Buy, making up 3.5% of the total [2]. Group 2: Limitations of Brokerage Recommendations - Brokerage recommendations may not effectively guide investors towards stocks with the highest potential for price appreciation, as studies indicate a lack of success in this regard [4]. - Analysts from brokerage firms often exhibit a positive bias due to vested interests, leading to a disproportionate number of favorable ratings compared to negative ones [5][9]. Group 3: Zacks Rank as an Alternative - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to ABR [7][10]. - The Zacks Rank is updated more frequently and reflects current business trends, making it a timely tool for predicting future stock prices [11]. Group 4: Intuit's Earnings Estimates - The Zacks Consensus Estimate for Intuit's current year earnings has increased by 0.7% over the past month to $19.33, indicating growing optimism among analysts [12]. - The recent change in consensus estimates, along with other factors, has resulted in a Zacks Rank 2 (Buy) for Intuit, suggesting a positive investment outlook [13].