Intuit Stock Now 28% Cheaper, Time To Buy

Intuit (INTU) stock might be a good buy now. Why? Because you get high margins – reflective of pricing power and cash generation capacity – for a discounted price. Companies like this generate consistent, predictable profits and cash flows, which reduce risk and allow capital to be reinvested. The market tends to reward that.

What Is Happening With INTU

INTU stock is now 28% cheaper based on its P/S (Price-to-Sales) ratio compared to 1 year ago.

The stock may not reflect it yet, but here is what’s going well for the company. Intuit’s recent Q1 fiscal 2026 results highlight robust customer additions across its platforms, with QuickBooks Online accounting revenue and TurboTax Live showing strong growth driven by expanding customer bases and higher effective pricing. This demonstrates continued pricing power. The company’s ongoing integration of AI-driven features enhances user experience and retention, further underpinning its cash generation capacity. Intuit has also reiterated its fiscal year 2026 guidance, expecting sustained revenue growth.

INTU Has Strong Fundamentals

• Recent Profitability: Nearly 33.4% operating cash flow margin and 26.7% operating margin LTM.
• Long-Term Profitability: About 32.3% operating cash flow margin and 24.2% operating margin last 3-year average.
• Revenue Growth: Intuit saw growth of 17.1% LTM and 13.5% last 3-year average, but this is not a growth story
• Available At Discount: At P/S multiple of 7.2, INTU stock is available at a 28% discount vs 1 year ago.

Below is a quick comparison of INTU fundamentals with S&P medians.

*LTM: Last Twelve Months

Don’t Expect A Slam Dunk, Though

While INTU stock may be a compelling investment opportunity, it’s always helpful to be aware of a stock’s history of drawdown. INTU fell 72% in the Dot-Com crash, 49% during the inflation shock, and 38% in the Global Financial Crisis. Even in milder sell-offs like 2018 and the Covid pandemic, losses hit around 20-36%. Solid fundamentals don’t prevent sharp declines when sentiment turns. Drawdowns like these show the stock’s volatility through different market storms. But the risk is not limited to major market crashes. Stocks fall even when markets are good – 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.

If you want more details, read Buy or Sell INTU Stock.

How We Arrived At INTU Stock

INTU piqued our interest because it meets the following criteria:

1. Greater than $10 Bil in market cap
2. High CFO (cash flow from operations) margins or operating margins
3. Meaningfully declined in valuation over the past 1 year

But if INTU doesn’t look good enough to you, here are other stocks that also check all these boxes:

1. Visa (V)
2. Salesforce (CRM)
3. T-Mobile US (TMUS)

Notably, a portfolio that was built starting 12/31/2016 with stocks that fulfill the criteria above would have performed as follows:

• Average 12-month forward returns of nearly 19%
• 12-month win rate (percentage of picks returning positive) of about 72%

A Multi Asset Portfolio Gives You Safer Smarter Growth

Stocks can jump or crash but different assets move on different cycles. A multi asset portfolio helps you stay invested while cushioning swings in equities.

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