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Yahoo
2 days ago
- Business
- Yahoo
Intuit Inc. (INTU) is Attracting Investor Attention: Here is What You Should Know
Intuit (INTU) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this maker of TurboTax, QuickBooks and other accounting software have returned +20.2% over the past month versus the Zacks S&P 500 composite's +6.7% change. The Zacks Computer - Software industry, to which Intuit belongs, has gained 14.1% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Intuit is expected to post earnings of $2.58 per share for the current quarter, representing a year-over-year change of +29.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -6.6%. The consensus earnings estimate of $19.40 for the current fiscal year indicates a year-over-year change of +14.5%. This estimate has changed +2% over the last 30 days. For the next fiscal year, the consensus earnings estimate of $22.08 indicates a change of +13.8% from what Intuit is expected to report a year ago. Over the past month, the estimate has changed +0.9%. With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Intuit. The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. In the case of Intuit, the consensus sales estimate of $3.75 billion for the current quarter points to a year-over-year change of +17.6%. The $18.7 billion and $20.96 billion estimates for the current and next fiscal years indicate changes of +14.8% and +12.1%, respectively. Intuit reported revenues of $7.75 billion in the last reported quarter, representing a year-over-year change of +15.1%. EPS of $11.65 for the same period compares with $9.88 a year ago. Compared to the Zacks Consensus Estimate of $7.54 billion, the reported revenues represent a surprise of +2.78%. The EPS surprise was +6.98%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Intuit is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Intuit. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intuit Inc. (INTU) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Why Intuit Stock Topped the Market on Tuesday
An analyst reiterated his very optimistic take on the business. He feels it has price upside approaching 10%. 10 stocks we like better than Intuit › Intuit (NASDAQ: INTU) stock was off to a fine start as the Memorial Day-shortened trading week began. The tax and finance software specialist was the subject of a new, bullish analyst note, and investors reacted to this by pushing the stock's price up about 4.4% on the day. That easily beat the 2% increase of the S&P 500 index. The analyst behind the new Intuit note was Mizuho's Siti Panigrahi, who reiterated his outperform (read: buy) recommendation on the stock at a price target of $825 per share. That anticipates upside of nearly 10% on today's closing price. Panigrahi might have felt compelled to double down on his Intuit take, as the stock just hit its one-year high. That wasn't a great surprise. At the end of last week, the company published fiscal-third-quarter results, posting impressive double-digit increases on both the top and bottom lines. Both key metrics beat consensus analyst estimates; ditto for fourth-quarter guidance. According to reports, Panigrahi was particularly heartened by the company's recent pricing increases for its foundational QuickBooks accounting software. These will kick in with the start of Intuit's fiscal 2026 on July 1. In his view, the move demonstrates management's ability to sustain double-digit percentage growth in its crucial global solutions group business. Intuit's third quarter is important and indicative, since it covers tax season (the company operates the storied Turbo Tax platform). Given its solid and impressive performance during the quarter, investors are right to consider management's ambitious guidance to be realistic. This feels like a business that will continue to power along, and I'd expect more stock price peaks in the coming weeks and months. Before you buy stock in Intuit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy. Why Intuit Stock Topped the Market on Tuesday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Intuit leans into AI to improve taxpayer experience, boost revenue
This story was originally published on CX Dive. To receive daily news and insights, subscribe to our free daily CX Dive newsletter. Intuit's AI-driven expert platform strategy is delivering an improved customer experience and drove 15% year-over-year revenue growth across the business, executives said during a Q3 2025 earnings call last week. AI was particularly impactful for customers using TurboTax this filing season, CEO Sasan Goodarzi said. The software directs customers to the right product to file taxes and reduces the time spent filing. 'With our investment in data, AI and AI-enabled human expertise, we are disrupting the assisted category with experiences that are resonating with customers across both consumer and business tax,' Goodarzi said. 'The exceptional results are fueled by strong execution of our strategy to win as an AI-driven expert platform by delivering the best experience, speed to money, and the best price for customers.' Intuit, the parent company to TurboTax, Credit Karma, QuickBooks and Mailchimp, has gone all in on AI to improve customer experience and boost revenue. Intuit reported total revenue of $7.8 billion in third quarter 2025, according to an earnings report. The strong results led the software company to raise its guidance, including revenue, operating income and operating margin. Intuit expects consumer group revenue to grow 11% year over year to $4 billion for the full fiscal year, to be driven by TurboTax Live revenue. 'The strength across the company is driven by our global AI-driven expert platform strategy, powering prosperity for consumers, small and mid-market businesses, and accountants,' Goodarzi said. 'We're fueling the financial success of approximately 100 million customers by automating everyday tasks, managing complex workflows and processes, and solving challenges before they arise with predictive insights, and taking actions.' Intuit uses AI agents as well as AI-assisted human agents. TurboTax's AI-powered, mobile-first 'done-for-you' tax product drove a 12% reduction in the average time a customer spent filing. AI also helped human tax experts. For TurboTax's full-service offering, experts spent about 20% less time preparing a return, according to Goodarzi. 'Our data and AI platform capabilities had a profound impact on the productivity of our experts,' Goodarzi said. 'By doing a lot of the work for them and helping them finish returns quickly and accurately, they spent more time engaging and onboarding customers.' Intuit is planning on rolling out a broader set of end-to-end AI agents, including a customer AI agent, a payment AI agent, a project management AI agent, and an accounting AI agent, Goodarzi said. These agents can also talk to each other to solve customers' problems. 'Our goal is to solve challenges before they arise with predictive insights, take smart action on our customers' behalf, and seamlessly connect them to AI-enabled human experts when needed with customers always in control,' Goodarzi said. Goodarzi is confident that Intuit can further disrupt the $35 billion assisted tax category. One competitor that had been ready to disrupt the field was the federal government. In 2024, the IRS came out with its own free tax filing software, Direct File, which earned high customer satisfaction marks. That program is now on the chopping block should the $3.8 trillion Republican tax bill that just passed the House become law. Intuit and H&R Block, which has its own tax-filing software, have long lobbied against the IRS providing free software directly to taxpayers, ProPublica found. Sign in to access your portfolio
Yahoo
3 days ago
- Business
- Yahoo
Should You Forget Palantir? This Wide-Moat AI Stock Is a Better Buy
Palantir continues to put up strong numbers, but its valuation is at nosebleed levels. Intuit is capitalizing on AI thanks to products like TurboTax and Quickbooks. The stock's valuation looks high, but its growth prospects are strong. 10 stocks we like better than Intuit › Palantir Technologies (NASDAQ: PLTR) stock has captivated investors, and it's easy to see why. The software stock has emerged as one of the biggest winners of the artificial intelligence (AI) era, thanks in large part to its AI platform (AIP), which combines the power of large language models (LLMs) with its deep data analytics platforms like Gotham and Foundry. Demand for Palantir's services has soared in the AI era, and its revenue growth has now accelerated for seven quarters in a row, coming in at 39% in the first quarter. At the same time, profits have surged as its operating margin has ramped up. In the first quarter, its operating income jumped 118% to $176 million. There's been no shortage of hype around Palantir as well, and that includes CEO Alex Karp, who's prone to using grandiose language to describe the company. In its recent earnings report, he said, "This is a level of surging and ferocious growth that would be spectacular for a company a tenth of our size. At this scale, however, our ascent is, we believe, unparalleled." Investors have bought into that hype as well, sending the stock up over 900% over the past two years. In fact, Palantir is now the most valuable pure-play software company at a market capitalization of $291 billion, which is ahead of Salesforce -- another software powerhouse -- at $262 billion. Along with that growth, Palantir's valuation has also soared into the stratosphere as it now trades at a price-to-sales ratio of 98, a valuation that would be considered expensive even if it was a quarter of that level. For investors impressed with Palantir's prowess in AI but looking for a more affordable alternative, there's one attractive software stock that just popped on its earnings report: Intuit (NASDAQ: INTU), the maker of TurboTax and Quickbooks. Because of its software geared toward consumers and small businesses, Intuit has one of the best use cases of AI, as it can leverage that technology to make tax preparation and accounting and bookkeeping easier. The company did just that in its recently reported fiscal third quarter, which is its biggest quarter of the year as it comes during tax season. CEO Sasan Goodarzi said in the report, "We're redefining what's possible with AI by becoming a one-stop shop of AI-agents and AI-enabled human experts to fuel the success of consumers and small and mid-market businesses." AI helped drive a number of product improvements in Turbotax with "data-in," or automated data imports covering 90% of customers' most common tax documents, up from 68% last year. AI also assisted Turbotax's human experts, and the time to complete returns was significantly reduced. In Quickbooks, the company is planning to introduce several end-to-end AI agents, including customer, payments, finance, project management, and accounting agents. AI is also helping drive the company's strong growth, even in a time of macroeconomic uncertainty, and management said that it believes it can continue to expand its already wide operating margin. In its fiscal third quarter, revenue rose 15% to $7.8 billion, which drove adjusted earnings per share up 18% to $11.65. For the full fiscal year, it raised its guidance on the top and bottom lines, calling for 15% revenue growth and 18% to 19% adjusted EPS growth to $20.07 to $20.12. Based on that forecast, the stock trades at a price-to-earnings ratio of just 36, which is about 60% lower than Palantir's price-to-sales ratio and only a modest premium to the S&P 500. Intuit has two sticky software products, TurboTax and Quickbooks, that keep customers in the ecosystem and can easily benefit from AI advances. Additionally, Credit Karma is taking off, with revenue up 31% in the third quarter, and management raised full-year revenue growth guidance from 5% to 8% to 28%, showing a dramatic acceleration in the business. The company reported an operating margin of 48% in the third quarter, and future growth should continue to be high margin as the subscription software model benefits from having near-zero marginal costs. Intuit stock hit an all-time high on Friday, but the stock looks poised to hit new heights in the future as it makes AI a bigger part of its arsenal. Before you buy stock in Intuit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Intuit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit, Palantir Technologies, and Salesforce. The Motley Fool has a disclosure policy. Should You Forget Palantir? This Wide-Moat AI Stock Is a Better Buy was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
TurboTax Maker Soars Past Buy Point On Google AI Partnership, Strong Growth Outlook
Intuit stock is at an all-time high and in a buy zone. The TurboTax software provider gapped up on earnings Friday.
