Intuit Inc (NASDAQ: INTU) has done quite well over the past four months but Shannon Saccocia is convinced that it’s still not too late to build a position in this name.
On Friday, the Chief Investment Officer of SVB Private revealed to have bought shares of the financial software company that she says is relatively more insulated from a recession.
Intuit has a competitive advantage in terms of the type of business they’re operating, which is tax and accounting, which tends to be more resilient in a recession, if enterprise spending slows. I like the business they’re in.
In February, the Nasdaq-listed firm reported its financial results for the second quarter that came in well above the analysts’ estimates. Versus its low in early November, Intuit stock is currently up close to 15%.
Saccocia likes Intuit also for its push into artificial intelligence and is convinced that it’s a name that has potential to see continued margin expansion moving forward. On CNBC’s “Halftime Report”, Saccocia noted:
The fact that they’re getting better margins off of their online, which is now a majority of their revenues, leads me to believe that it’ll continue to have margin expansion while margins are under fire in other parts of the sector.
Interestingly, she trimmed her stake in both Apple Inc and Microsoft Corporation as she bought Intuit stock. Her constructive view is in line with Wall Street that also currently has a consensus “overweight” rating on this tech stock.
Last week, the California-based company said Sandeep Aujla will assume the role of its Chief Financial Officer on August 1st. Aujla is currently its SVP of Finance.
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