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What Has Driven Intuit Stock Higher over the Years?

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Product portfolio

Intuit (INTU) stock has generated impressive returns over the years. INTU stock is up 27.3% this year and has gained close to 26% annually in the last five years. So what has driven the company’s stock price higher?

Intuit has three primary business segments: Consumer Group, Small Business & Self Employed, and Strategic Partner. At the end of fiscal 2018 (year ended in July), the Small Business & Self Employed segment accounted for 50% of sales, followed by Consumer Group at 42% and Strategic Partner at 8%.

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The company provides tax software solutions and other business and financial management solutions. The Small Business & Self Employed segment offers QuickBooks, which is a prominent financial management software solution. The Consumer segment offers Turbo Tax, which is an income tax preparation product. The Strategic Partner segment consists of professional tax offering solutions.

Revenue growth

In  Q3 of fiscal 2019, Intuit’s sales rose 12.0% YoY. Its robust product portfolio has managed to consistently drive sales higher over the years. Intuit’s sales have risen at a compound annual growth rate (or CAGR) of 7.4% in the last five years.

Intuit sales have risen from $4.17 billion in fiscal 2013 to almost $6.0 billion in fiscal 2018. In the next three years, analysts expect Intuit’s sales to rise at a CAGR of 11.1% annually to reach $8.2 billion.

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