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Valued at a market cap of $187.4 billion, Intuit Inc. (INTU) is a financial software company that develops and sells financial management, accounting, and tax preparation software and related services. The California-based company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax.
Shares of the tax and accounting software provider have outperformed the broader market over the past 52 weeks. INTU has rallied 37.3% over this time frame, while the broader S&P 500 Index ($SPX) has gained 27.8%. But, in 2024, shares of INTU gained 7.3%, lagging behind SPX’s 17.8% return on a YTD basis.
Zooming in further, INTU has outpaced the North American Tech-Software iShares ETF’s (IGV) 27.6% gain over the past 52 weeks.
Intuit has outperformed over the past year due to its effective integration of AI technologies and strong performance in high-growth segments like small business solutions and personal finance. However, despite beating Q3 earnings estimates on May 23, the stock fell 8.4% the following day due to investor concerns about the sustainability of demand for its AI-powered financial products amidst a cooling broader market. Additionally, the market reacted to the transition in leadership at Credit Karma, which added uncertainty to the company's future outlook.
For the fiscal year that ended in July, analysts expect INTU’s EPS to grow 21.7% year over year to $11.72. The company’s earnings surprise history is promising. It beat the consensus estimates in each of the last four quarters.
Among the 27 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 22 “Strong Buy” ratings, one “Moderate Buy,” and four “Holds.”
Overall, the configuration has remained fairly steady over the past months.
On Aug. 21, Citi (C) maintained a “Buy” rating on Intuit, with a price target of $750, anticipating a positive growth outlook by the company for fiscal year 2025 due to expected modest improvement, particularly in the Small and Medium Business (SMB) and Credit Karma (CK) segments.
The mean price target of $706.58 represents a premium of just 5.4% to INTU’s current levels. The street-high price target of $770, implies a potential upside of 14.8% from the current price.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
