"Too big to fail" is how we would describe the megacap stocks in this article today.
While they will likely stand the test of time, it’s not all sunshine and rainbows as their scale can limit their ability to find new sources of growth.
Sales intelligence platform ZoomInfo missed Wall Street’s revenue expectations in Q1 CY2025, with sales falling 1.4% year on year to $305.7 million. Its non-GAAP profit of $0.23 per share was in line with analysts’ consensus estimates.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
Tax and accounting software provider, Intuit (NASDAQ:INTU) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 15.1% year on year to $7.75 billion. Its non-GAAP EPS of $11.65 per share was 6.8% above analysts’ consensus estimates.
Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 10.2% over the last six months. This performance was worse than the S&P 500’s 3.3% decline.
Exciting developments are taking place for the stocks in this article.
They’ve all surged ahead of the broader market over the last month as catalysts such as new products and positive media coverage have propelled their returns.
Bill.com has gotten torched over the last six months - since November 2024, its stock price has dropped 52.2% to $44.40 per share. This might have investors contemplating their next move.
Analysts raise ratings for Intuit Inc (INTU) after strong Q3 results, with revenue of $7.75 billion (+15%) and EPS of $11.65 (+$0.70), beating estimates. They expect continued momentum and growth in QuickBooks, TurboTax, and Credit Karma, driven by AI and automation.
Shares of tax and accounting software provider, Intuit (NASDAQ:INTU) jumped 7.6% in the afternoon session after the company reported an impressive "beat and raise" quarter as it upped its full-year EPS guidance and provided revenue guidance for the next quarter that exceeded Wall Street's estimates, sending a clear signal of improved confidence in its business momentum.
Wall Street stumbled midday Friday, shaken by a fresh wave of trade war fears after President Donald Trump proposed aggressive new tariffs on Apple Inc. (NASDAQ:AAPL)
