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Trade-Ideas LLC identified

Intuit

(

INTU

) as a weak on high relative volume 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 $248.0 million.
  • INTU has traded 329,756 shares today.
  • INTU is trading at 5.06 times the normal volume for the stock at this time of day.
  • INTU is trading at a new low 3.07% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on INTU:

TheStreet Recommends

Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals primarily in the United States, Canada, the United Kingdom, Australia, India, and Singapore. The stock currently has a dividend yield of 1.2%. INTU has a PE ratio of 64. Currently there are 6 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 2.4 million shares per day over the past 30 days. Intuit has a market cap of $28.6 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 1.27 and a short float of 3.2% with 3.47 days to cover. Shares are up 9.6% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intuit as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth greatly exceeded the industry average of 15.7%. Since the same quarter one year prior, revenues rose by 16.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 63.1% when compared to the same quarter one year prior, rising from -$84.00 million to -$31.00 million.
  • The gross profit margin for INTUIT INC is currently very high, coming in at 84.15%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -4.34% is in-line with the industry average.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

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