Trade-Ideas LLC identified

Intuit

(

INTU

) as a "dead cat bounce" (down big yesterday but up big today) 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 $230.5 million.
  • INTU has traded 1.2 million shares today.
  • INTU is up 3.7% today.
  • INTU was down 5.2% yesterday.

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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 1.4%. INTU has a PE ratio of 33. Currently there are 5 analysts that rate Intuit a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Recommends

The average volume for Intuit has been 1.5 million shares per day over the past 30 days. Intuit has a market cap of $23.2 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.94 and a short float of 2.6% with 2.51 days to cover. Shares are down 13.4% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intuit as a

hold

. The company's strengths can be seen in multiple areas, such as its increase in net income, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including premium valuation, weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from the ratings report include:

  • 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 148.3% when compared to the same quarter one year prior, rising from -$29.00 million to $14.00 million.
  • 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.07, which illustrates the ability to avoid short-term cash problems.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 11.9%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Net operating cash flow has significantly decreased to -$218.00 million or 159.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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