Intuit (Nasdaq: INTU), the first thought likely to materialize is taxes. The company certainly specializes in tax preparation software, but it’s also getting a lot of attention for its artificial intelligence (AI) protocol. Going forward, the company could become an ideal AI stock for the gig economy. I am bullish on INTU stocks.
According to data from Statista, the gig economy could reach a valuation of $455.2 billion by the end of this year.In addition, other sources such as business research insights, the collective commercial activity of freelancers is expected to reach $873 billion in 2028. This is a huge market and will need help with tax preparation, so basically this framework strengthens the long-term narrative of his INTU shares.
Equally important, the initial work-from-home pivot initiated by companies to mitigate the impact of COVID-19 has changed the workplace paradigm. White-collar workers now recognize that it is possible to work remotely, but its effectiveness is debatable. When big corporations put an end to this privilege, it’s no surprise that many worker bees rebelled.
But a slowdown environment in many industries, combined with mass layoffs, means employers no longer want to play ball. .
To be fair, the majority of people could pull corporate lines. However, this dynamic may be only a secondary catalyst for the tax reserve giant.
INTU Stock Analysis
In support of the bullish case, on TipRanks, INTU stock has a Smart Score rating of ‘Perfect 10’. This indicates that the stock is likely to outperform the broader market.
INTU Stocks Should Profit as AI Investments
While the usual suspects in the big tech space get most of the attention when it comes to AI protocols, smart investors should consider INTU shares carefully. Again, this isn’t the most exciting company. However, its AI and machine learning architecture could change the game forever.
It’s not an exaggeration. Last year, Intuit said on his website that it is leveraging AI to enhance the user experience (UX). Given that tax filing can be a daunting task, especially for small business owners (like gig workers), improving UX is much more important than the average layperson realizes.
In addition, Intuit is deeply involved in conversational AI technology and intelligent AI assistant programs. This is where INTU stocks can really move forward as a disruptive investment. Moreover, the system can respond with clear guidance and solutions.
As Intuit’s technology evolves, the relationship between the United States and tax preparation may change. For example, an article published by the New York University School of Law revealed that most people automatically know. US tax law is very complex and as a result most filers make mistakes.
So if Intuit can help reduce costly errors during these times, this attribute alone might be worth buying INTU stock.
For the gig economy, a gig worker (or, more appropriately, an independent contractor) files a 1099 form. This requires, among other things, the income statement. More complex than the employee’s W-2 form, the gig economy organically fosters relevance to Intuit’s AI protocol. Over time, this framework should enhance her INTU inventory as well.
Compelling financials await
Another factor in favor of INTU stock is its financial position. For full disclosure, INTU trades at multiples of 60.5, making it overvalued for the industry. However, Intuit is built for the long term. With patience, investors can enjoy attractive opportunities.
For example, Intuit’s Altman Z-Score (solvency ratio) reached 7.79, indicating very low bankruptcy risk. Operationally, the company boasts revenue growth of 20.4% in his three years. This stat beats his 76% among competitors. Similarly, the company’s three-year book growth rate was 59.4%, ahead of the industry’s 89.7%.
Ultimately, the tax preparation specialist boasts a net profit margin of 14.2%, outperforming its industry peers at 85.2%. Finally, his return on equity was 12.4%, ahead of his competitor’s 71.4%. Additionally, relatively solid statistics reflect quality business.
Is INTU Stock a Buy, According to Analysts?
Looking to Wall Street, INTU stock has a strong buy consensus rating based on 12 buy, 1 hold and 1 sell ratings. INTU’s average price target is $480.36, suggesting a 17.6% upside potential.
Lesson learned: INTU stocks are AI sleepers
In many ways, Intuit is a harmless company, and few people talk about it with passion and vigor. Of course, the harsh reality is that tax prep is as exciting as watching paint dry. But with the integration of AI protocols, the company could turn the soul-sucking process into a quick and efficient process. If so, INTU stock deserves to be on your radar.
Disclosure
The views and opinions expressed herein are those of the authors and do not necessarily reflect those of Nasdaq, Inc.
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