Intuit Inc. (INTU): Today's Featured Technology Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

Intuit ( INTU) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 0.4%. By the end of trading, Intuit fell $1.49 (-2.5%) to $59.00 on heavy volume. Throughout the day, 3,864,712 shares of Intuit exchanged hands as compared to its average daily volume of 2,402,800 shares. The stock ranged in price between $58.88-$60.26 after having opened the day at $59.65 as compared to the previous trading day's close of $60.49. Other companies within the Technology sector that declined today were: Renewable Energy Trade Board ( EBOD), down 38.7%, Kemet Corporation ( KEM), down 26.2%, Rackspace Hosting ( RAX), down 24.7% and Nortech Systems Incorporated ( NSYS), down 20.0%.
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Intuit Inc. provides business and financial management solutions for small businesses, consumers, accounting professionals, and financial institutions primarily in the United States, Canada, the United Kingdom, India, and Singapore. Intuit has a market cap of $17.9 billion and is part of the computer software & services industry. The company has a P/E ratio of 25.4, above the S&P 500 P/E ratio of 17.7. Shares are up 1.8% year to date as of the close of trading on Wednesday. Currently there are 5 analysts that rate Intuit a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Intuit as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Dataram Corporation ( DRAM), down 38.0%, WPCS International ( WPCS), down 14.6%, Chyron Corporation ( CHYR), down 13.9% and RELM Wireless Corporation ( RWC), down 12.8% , were all gainers within the technology sector with Citrix Systems ( CTXS) being today's featured technology sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).

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