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The Intuit stock (NASDAQ:INTU) caught my attention after seeing the growth in recent months. The stock price started the year at $380 and fluctuated within a range of $360 to $420. But since early May, the stock has risen from $386 to a recent high of just under $583, over 50% gain. Impressive for a company with a market cap of $152B.

Intuit

Intuit is an American business that specialises in financial software. They own dominant brands in tax services, small business accounting and recently purchased Credit Karma in December 2020 to widen their footprint in the finance market.

These three brands are growing, and Intuit announced in their recent earnings they anticipate revenue growth of 15% for the full-year fiscal 2022 revenue. This level of continued growth on a fundamentally established company is a great reason why they are worth considering.

What lies ahead?

Intuit uses AI technology for its accounting services, a business sector that could easily be overrun by smart AI. With Intuit establishing themselves with this already, they look primed to benefit from this in the future.

Management also looks to expand the Credit Karma business line, which recently added home and personal loans. This saw impressive growth in the last quarter.

The Intuit stock

What are some other pros of the Intuit stock? Firstly, dividends. We often write about how dividends are a great way to compound your portfolio. Intuit offers a dividend of 0.42% per quarter to help compound your returns.

The second pro is the stable, yet strong, gains seen in the share price. Intuit is still growing at an impressive rate, but doesn’t come with the volatility of some other growth stocks. Volatility can be good and bad for traders. Sometimes offering quick returns if bought on good pullbacks, but also offering quick drops in price which can hurt in the short term. Intuit offers the strong growth, without the psychological challenge of a choppy share price.

Concerns

Insider buying can be an indicator as to what the people on the inside of the company think about the future. Intuit Executive VP, Laura Fennell, made the largest insider sale in the last 12 months, selling $6.4M worth of stock at a price of $324. Generally, insider selling is only a weak sign, with insiders choosing to take their cash off the table as they believe the price may be overvalued. What is worth noting is that she still holds 70% of her shares, and the price has risen significantly since she sold. So it may have been just a chance to cash in for her personal benefit, but it is something to keep in mind.

Final thoughts

For me personally, I like the potential, the dividends and the stableness of Intuit to add for a long term position.

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