Intuit Stock Testing Price Floor – Buy Now?
Intuit (INTU) stock should be on your watchlist. Here is why – it is currently trading in the support zone ($535.77 – $592.16), 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 24.3% in average peak returns.
| Peak Return | Days to Peak Return | |
|---|---|---|
| 8/4/2021 | 7.8% | 51 |
| 9/30/2021 | 28.9% | 60 |
| 11/10/2023 | 27.1% | 194 |
| 5/31/2024 | 22.9% | 166 |
| 2/24/2025 | 10.3% | 2 |
| 4/8/2025 | 48.9% | 113 |
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 amid strong fundamentals and valuation.
Intuit rests on key support with an oversold RSI. Q1 FY26 revenue climbed 18%, with fiscal 2026 guidance projecting 12-13% growth. Robust operating margins and QuickBooks’ pricing power underscore its fundamental strength. Recent analyst downgrades, stemming from high 2025 comparisons and slightly soft Q2 guidance, created short-term pressure. However, average price targets still indicate over 40% upside. Industry tailwinds from cloud adoption and AI in fintech and accounting software, where Intuit is integrating AI, offer secular growth. The upcoming tax season is a near-term catalyst. DCF models suggest the stock is undervalued.
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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 38.2
| INTU | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 38.2 | 24.4 |
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| 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% |
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| 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.
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