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Buy this Big Tech Stock Now at a Discount and Hold Forever?
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Intuit stock has fallen out of favor with investors in 2024 amid fears surrounding AI and the IRS’ new free online tax prep system. INTU shares are flat in 2024, lagging the Zacks Tech sector’s 16% climb.
Despite the recent underperformance, Intuit has more than doubled Tech over the past decade and it’s projected to post solid double-digit sales and earnings growth going forward. Intuit stock could be ready to break out to all-time highs after getting rejected at its 2021 peaks multiple times this year.
Intuit’s Simple Bull Case
Intuit’s (INTU - Free Report) TurboTax software helped transform INTU into a technology powerhouse with a $174 billion market cap that posts consistent double-digit sales and earnings growth. Taxes will be with mankind forever and a government-backed tax prep offering from the IRS hardly seems like a viable long-term Intuit competitor.
Intuit utilized the Covid boom to expand its software portfolio into other areas of consumer finance, email marketing, digital-ad services, and more. Intuit now boasts roughly 100 million customers across TurboTax, QuickBooks, Credit Karma, and Mailchimp.
Image Source: Zacks Investment Research
TurboTax is the most recognizable and consumer-facing part of its business. But Intuit’s wider consumer unit includes Credit Karma’s personal finance services such as credit cards, personal loans, home and auto loans, and insurance.
Intuit’s offerings such as QuickBooks serve small businesses and self-employed people around the world via financial and business-management services, payroll solutions, merchant payment-processing solutions, financing, and more.
Recent Intuit Updates and Growth Outlook
Intuit in early July proved to Wall Street it’s going all-in on artificial intelligence. INTU said it would cut 1,800 jobs (10% of its workforce) and hire roughly 1,800 new people “primarily in engineering, product, and customer-facing roles” to pursue AI-driven expansion.
Intuit expects its increased AI investments will make it more attractive to mid-market customers and boost its international reach, among other benefits.
Image Source: Zacks Investment Research
INTU boosted its Small Business and Self-Employed Group sales by 19% in fiscal 2024, with Online Ecosystem revenue 20% higher. Intuit grew its total revenue by 13% in FY24 (ended July 31) as part of 16% average sales growth during the past nine years.
Intuit is projected to grow its revenue by 12% in both FY25 and FY26 to reach $20.46 billion vs. $16.29 billion in FY24. Intuit’s consistent top-line expansion is up there with the likes of Microsoft (MSFT - Free Report) and others.
Intuit grew its adjusted FY24 EPS by 18% and lifted its guidance on August 22. On the bottom line, Inuit is projected to grow its adjusted EPS by 14% both years. INTU’s FY25 and FY26 estimates have edged slightly higher since its Q4 release.
Intuit Stock Performance, Technical Levels, and Valuation
Intuit shares have soared 650% in the past 10 years to crush Tech’s 275%. INTU’s 2,100% run during the last 15 years helps it blow away Microsoft and nearly quadruple Tech.
INTU has lagged just behind Tech during the trailing three years, with Intuit stock flat YTD vs. the Tech sector’s 16% climb.
Image Source: Zacks Investment Research
Intuit is far from a value stock, trading at 43.8X forward 12-month earnings compared to Tech’s 25.3X. But Wall Street has been paying up for INTU’s consistent expansion for 10 years. INTU trades at a 48% discount to its 10-year highs and near its median.
Intuit has been rejected near its 2021 peaks multiple times in 2024. The stock trades roughly 10% below its highs and 17% beneath its average Zacks price target. INTU is also finding support near its 21-week moving average while trading at neutral RSI levels.
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Buy this Big Tech Stock Now at a Discount and Hold Forever?
Intuit stock has fallen out of favor with investors in 2024 amid fears surrounding AI and the IRS’ new free online tax prep system. INTU shares are flat in 2024, lagging the Zacks Tech sector’s 16% climb.
Despite the recent underperformance, Intuit has more than doubled Tech over the past decade and it’s projected to post solid double-digit sales and earnings growth going forward. Intuit stock could be ready to break out to all-time highs after getting rejected at its 2021 peaks multiple times this year.
Intuit’s Simple Bull Case
Intuit’s (INTU - Free Report) TurboTax software helped transform INTU into a technology powerhouse with a $174 billion market cap that posts consistent double-digit sales and earnings growth. Taxes will be with mankind forever and a government-backed tax prep offering from the IRS hardly seems like a viable long-term Intuit competitor.
Intuit utilized the Covid boom to expand its software portfolio into other areas of consumer finance, email marketing, digital-ad services, and more. Intuit now boasts roughly 100 million customers across TurboTax, QuickBooks, Credit Karma, and Mailchimp.
Image Source: Zacks Investment Research
TurboTax is the most recognizable and consumer-facing part of its business. But Intuit’s wider consumer unit includes Credit Karma’s personal finance services such as credit cards, personal loans, home and auto loans, and insurance.
Intuit’s offerings such as QuickBooks serve small businesses and self-employed people around the world via financial and business-management services, payroll solutions, merchant payment-processing solutions, financing, and more.
Recent Intuit Updates and Growth Outlook
Intuit in early July proved to Wall Street it’s going all-in on artificial intelligence. INTU said it would cut 1,800 jobs (10% of its workforce) and hire roughly 1,800 new people “primarily in engineering, product, and customer-facing roles” to pursue AI-driven expansion.
Intuit expects its increased AI investments will make it more attractive to mid-market customers and boost its international reach, among other benefits.
Image Source: Zacks Investment Research
INTU boosted its Small Business and Self-Employed Group sales by 19% in fiscal 2024, with Online Ecosystem revenue 20% higher. Intuit grew its total revenue by 13% in FY24 (ended July 31) as part of 16% average sales growth during the past nine years.
Intuit is projected to grow its revenue by 12% in both FY25 and FY26 to reach $20.46 billion vs. $16.29 billion in FY24. Intuit’s consistent top-line expansion is up there with the likes of Microsoft (MSFT - Free Report) and others.
Intuit grew its adjusted FY24 EPS by 18% and lifted its guidance on August 22. On the bottom line, Inuit is projected to grow its adjusted EPS by 14% both years. INTU’s FY25 and FY26 estimates have edged slightly higher since its Q4 release.
Intuit Stock Performance, Technical Levels, and Valuation
Intuit shares have soared 650% in the past 10 years to crush Tech’s 275%. INTU’s 2,100% run during the last 15 years helps it blow away Microsoft and nearly quadruple Tech.
INTU has lagged just behind Tech during the trailing three years, with Intuit stock flat YTD vs. the Tech sector’s 16% climb.
Image Source: Zacks Investment Research
Intuit is far from a value stock, trading at 43.8X forward 12-month earnings compared to Tech’s 25.3X. But Wall Street has been paying up for INTU’s consistent expansion for 10 years. INTU trades at a 48% discount to its 10-year highs and near its median.
Intuit has been rejected near its 2021 peaks multiple times in 2024. The stock trades roughly 10% below its highs and 17% beneath its average Zacks price target. INTU is also finding support near its 21-week moving average while trading at neutral RSI levels.