Intuit Inc. (INTU): Today's Featured Computer Software & Services 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 Computer Software & Services industry lower today making it today's featured Computer Software & Services laggard. The industry as a whole closed the day up 0.3%. By the end of trading, Intuit fell $0.99 (-1.6%) to $59.64 on light volume. Throughout the day, 1,706,601 shares of Intuit exchanged hands as compared to its average daily volume of 2,452,000 shares. The stock ranged in price between $59.52-$60.75 after having opened the day at $60.34 as compared to the previous trading day's close of $60.63. Other companies within the Computer Software & Services industry that declined today were: CounterPath Corporation ( CPAH), down 6.5%, GRAVITY ( GRVY), down 4.7%, TigerLogic Corporation ( TIGR), down 4.5% and Red Hat ( RHT), down 4.3%.
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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 $17.7 billion and is part of the technology sector. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 0.6% year to date as of the close of trading on Friday. Currently there are 4 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 reasonable valuation levels, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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, Pactera Technology International ( PACT), down 30.6%, Webmedia Brands ( WEBM), down 12.2%, Crexendo ( EXE), down 9.6% and Sonic Foundry ( SOFO), down 9.4% , were all gainers within the computer software & services industry with Activision Blizzard ( ATVI) being today's featured computer software & services industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer software & services industry could consider iShares S&P NA Tech Software Idx ( IGV) while those bearish on the computer software & services industry could consider ProShares Ultra Short Technology ( REW).

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