New Lifetime High Reached: Intuit (INTU)
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
Trade-Ideas LLC identified
(
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Intuit as such a stock due to the following factors:
- INTU has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $134.3 million.
- INTU has traded 409,381 shares today.
- INTU is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in INTU with the Ticky from Trade-Ideas. See the FREE profile for INTU NOW at Trade-Ideas
More details on INTU:
Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals in the United States, Canada, the United Kingdom, Australia, India, and Singapore. The stock currently has a dividend yield of 1%. INTU has a PE ratio of 35.9. Currently there are 5 analysts that rate Intuit a buy, 1 analyst rates it a sell, and 7 rate it a hold.
The average volume for Intuit has been 1.7 million shares per day over the past 30 days. Intuit has a market cap of $27.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.89 and a short float of 2.9% with 5.99 days to cover. Shares are up 8.4% year-to-date as of the close of trading on Wednesday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Intuit as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.3%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, INTUIT INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has slightly increased to $365.00 million or 9.93% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.21%.
- INTU's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.94 is somewhat weak and could be cause for future problems.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- You can view the full Intuit Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
null