“Betting On This Year's Worst Stock: Intuit”
INTU is undervalued due to excessive AI fears; strong fundamentals and moat support a bull thesis for mean reversion.
You've got a company with dominant market share, growing revenues at double-digit rates, boasting operating margins north of 25%, and throwing off more than $5 billion of free cash flow. Plus, it's paying a growing dividend.
So, would you be surprised to hear that this same stock is the single worst performer in the entire S&P 500 this year, down nearly 23 from its high? That company is into it. And unless this business is set to completely implode over the next few years, getting shares at a 10-year low in its price to earnings ratio seems like a real steal.