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Here's How Much a $1000 Investment in Intuit Made 10 Years Ago Would Be Worth Today

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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.

Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks.

What if you'd invested in Intuit (INTU - Free Report) ten years ago? It may not have been easy to hold on to INTU for all that time, but if you did, how much would your investment be worth today?

Intuit's Business In-Depth

With that in mind, let's take a look at Intuit's main business drivers.

Headquartered in Mountain View, CA, Intuit Inc. is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally. The company has offices in the United States, Canada, India, the United Kingdom, Singapore, Australia, and other locations.

In fiscal 2020, Intuit generated total revenues of $7.68 billion. The company has three reportable segments: Small Business and Self-Employed Group, Consumer, and Strategic Partner.

Small Business and Self-Employed Group (52.7% of fiscal 2020 revenues) segment serves small businesses and self-employed people around the world, and the accounting professionals who serve and advise them. Intuit’s offerings include QuickBooks financial and business-management online services and desktop software, payroll solutions, merchant payment-processing solutions, and financing for small businesses.

Consumer (40.8% of fiscal 2020 revenues) segment offers DIY and assisted TurboTax income-tax preparation products and services. These solutions are sold in the United States and Canada. Intuit’s Mint and Turbo offerings serve consumers and help them understand and improve their financial lives by offering a view of their financial health.

Strategic Partner (6.5% of fiscal 2020 revenues) serves professional accountants in the United States and Canada, who are essential to both small businesses’ success and tax preparation and filing. Intuit’s professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online.

In the Small Business and Self-Employed segment, Intuit competes with companies such as The Sage Group. In payroll, it competes with Automatic Data Processing and Paychex, among others. In the area of merchant services, the company’s rivals are financial institutions like Wells Fargo, JP Morgan Chase and Bank of America. In the Consumer Segment, Intuit faces intense competition from tax preparation service provider H&R Block.

Bottom Line

While anyone can invest, building a lucrative investment portfolio takes research, patience, and a little bit of risk. If you had invested in Intuit ten years ago, you're probably feeling pretty good about your investment today.

A $1000 investment made in June 2011 would be worth $9,375.69, or a gain of 837.57%, as of June 14, 2021, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 234.19% and gold's return of 18.21% over the same time frame.

Going forward, analysts are expecting more upside for INTU.

Intuit is benefiting from strong momentum in online ecosystem revenues and solid professional tax revenues. The TurboTax Live offering is also driving growth in the Consumer tax business. Solid momentum in the company’s lending product, QuickBooks Capital, remains a positive. Moreover, the company’s strategy of shifting its business to cloud-based subscription model will help generate stable revenues over the long run. The stock has outperformed the industry over the past year. Nonetheless, Intuit’s near-term prospect looks gloomy as the global lockdown amid the coronavirus crisis has affected small businesses, posing risks to its revenue growth. Additionally, higher costs and expenses due to increased investments in marketing and engineering teams are likely to continue impacting bottom-line results in the near term.

The stock is up 13.16% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 10 higher, for fiscal 2021. The consensus estimate has moved up as well.

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