The fintech share is approaching its all-time high
Intuit Inc. (NASDAQ: INTU) is an American company specializing in financial software technology. Intuit’s products include the tax preparation application, TurboTax, the personal finance app, Mint, the credit reporting company Credit Karma, and the small business accounting program QuickBooks. The company operates at 20 locations in nine countries and employs over 10,000 people.
On April 5th, Intuit ProConnect, a segment of Intuit, announced a new partnership with Practice Ignition. Practice Ignition is automated quotation and payment management software that eliminates administrative tasks. Practice Ignition has reportedly partnered with Intuit professional tax products to improve workflow and productivity for tax professionals.
INTU is up about 65% year over year and has grown significantly since hitting a more than a year low of $ 240.38 last April. Additionally, Intuit stock is up 5.6% year-to-date, down just 5% from its record high of $ 423.74. Intuit also offers a forward dividend of 2.36, which translates to a dividend yield of 0.59%.
Intuit has seen strong and consistent earnings growth in both profit and profit zones over the past few years. In fiscal 2020, INTU grew sales by 13% and net income by 17%. Total revenue increased to $ 7.68 billion and net income increased to $ 1.826 billion. Intuit also has a decent balance sheet that contains almost as much cash as debt. INTU’s total debt is $ 2.82 billion and cash and cash equivalents are $ 2.74 billion.
Options traders are now optimistic. The share’s 50-day call / put volume ratio of 1.48 on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX) is in the 93rd percentile of their annual range, which means that long calls have been made on a much faster than usual clip in the last 10 weeks.
However, like most high performing companies, the biggest problem with potential Intuit stock investments right now is massive valuation. Intuit stock currently trades at a sky-high price-to-earnings-ratio of 61.22 and has a forward price-to-earnings-ratio of 40.98. Intuit stock is currently near its all-time high and could potentially pull back or plateau in the short term. However, INTU could very easily continue its upward trend for the next year or two. Overall, Intuit stock has all the signs that it could be a long-term winner in a trading portfolio.