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Why Intuit Is Poised to Outperform

By Brian D. Pacampara, CFA - Apr 3, 2013 at 5:00PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, accounting software specialist Intuit (INTU 8.21%) has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Intuit and see what CAPS investors are saying about the stock right now.

Intuit facts

Headquarters (founded)

Mountain View, Calif. (1983)

Market Cap

$19.4 billion

Industry

Application software

Trailing-12-Month Revenue

$4.2 billion

Management

President/CEO Brad Smith (since 2008)

Vice President/CFO R. Neil Williams (since 2008)

Return on Equity (average, past 3 years)

28%

Cash/Debt

$678.0 million / $499.0 million

Dividend Yield

1%

Competitors

Automatic Data Processing

H&R Block

Paychex

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 629 members who have rated Intuit believe the stock will outperform the S&P 500 going forward.

Earlier this year, one of those Fools, WildTing, succinctly summed up Intuit bull case for our community:

[T]he one thing that impressed me about this company is they don't look like they're afraid of innovation. A potential disruptor came by in Mint, and instead of running away or fighting it, they bought Mint and left it alone to develop. Solid company, solid financials, and still innovating. One of these "DUH" companies I wish I would've thought of earlier.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

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Stocks Mentioned

Intuit Inc. Stock Quote
Intuit Inc.
INTU
$388.45 (8.21%) $29.48
Automatic Data Processing, Inc. Stock Quote
Automatic Data Processing, Inc.
ADP
$213.90 (0.55%) $1.17
Paychex, Inc. Stock Quote
Paychex, Inc.
PAYX
$117.99 (0.13%) $0.15
H&R Block, Inc. Stock Quote
H&R Block, Inc.
HRB
$34.25 (-0.95%) $0.33

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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