Intuit Stock Pulls Back to Support – Smart Entry?
Intuit (INTU) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($498.67 – $551.17), levels from which it has bounced meaningfully before. In the last 10 years, Intuit stock received buying interest at this level 6 times and subsequently went on to generate 24.6% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 7/22/2021 | 10.9% | 64 |
| 10/4/2021 | 32.4% | 56 |
| 7/28/2023 | 8.2% | 41 |
| 11/7/2023 | 38.2% | 372 |
| 2/25/2025 | 12.6% | 1 |
| 4/7/2025 | 45.6% | 114 |
Yet, a support zone alone isn’t enough; rebounds are more likely when fundamentals, sentiment, and market conditions line up. How does that look for INTU?
Rebound Likely: Undervalued, strong fundamentals, AI integration.
Intuit’s recent 19.57% price dip to a 52-week low presents a disconnect from its fundamentals. Q1 FY2026 revenue climbed 18%, EPS grew 34%, and FY2026 guidance projects 12-13% revenue growth. Analysts maintain a “Moderate Buy” consensus with average price targets ($795-$802) suggesting over 50% upside from the current $524.92 price. While AI disruption fears are a sector headwind, Intuit’s proactive AI integration and established compliance expertise offer a durable competitive advantage. A DCF model indicates a 31.2% discount to its estimated fair value. This combination signals a probable price recovery.
- Catalysts That Could Propel Palantir Technologies Stock to the Moon
- Can Amazon.com Stock Withstand These Pressures?
- Could Webull Stock’s Cash Flow Spark the Next Rally?
- Intuit Stock Now 25% Cheaper, Time To Buy
- A Decade of Rewards: $51 Bil From Broadcom Stock
- Ten-Year Tally: Coca-Cola Stock Delivers $85 Bil Gain
How Do INTU Financials Look Right Now?
- Revenue Growth: 17.1% LTM and 13.5% last 3-year average.
- Cash Generation: Nearly 32.7% free cash flow margin and 26.7% operating margin LTM.
- Recent Revenue Shocks: The minimum annual revenue growth in the last 3 years for INTU was 10.8%.
- Valuation: INTU stock trades at a PE multiple of 35.6
| INTU | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 35.6 | 24.5 |
|
|
||
| LTM* Revenue Growth | 17.1% | 6.4% |
| 3Y Average Annual Revenue Growth | 13.5% | 5.7% |
| Min Annual Revenue Growth Last 3Y | 10.8% | 0.2% |
|
|
||
| LTM* Operating Margin | 26.7% | 18.8% |
| 3Y Average Operating Margin | 24.2% | 18.4% |
| LTM* Free Cash Flow Margin | 32.7% | 13.5% |
*LTM: Last Twelve Months | For more details on INTU fundamentals, read Buy or Sell INTU Stock.
And What If The Support Breaks?
Intuit isn’t immune to big sell-offs. It plunged 72% in the Dot-Com bubble, took a 49% hit during the inflation shock, and dropped about 38% in both the Global Financial Crisis and the Covid pandemic. Even smaller market hiccups, like the 2018 correction, caused a 20%+ dip. The stock has solid fundamentals, but history shows sharp declines can still happen when trouble hits.
But the risk is not limited to major market crashes. Stocks fall even when markets are in good shape – think events like earnings, business updates, outlook changes. Read INTU Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
Still not sure about INTU stock? Consider the portfolio approach.
A Multi Asset Portfolio Gives You Safer Smarter Growth
Individual picks are volatile but diversified assets offset each other. A multi asset portfolio helps you stay the course capture upside and reduce downside.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices