Intuit Stock Is Undervalued

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Intuit Stock Is Undervalued

Intuit Stock Is Undervalued. Should You Buy It?

This year is not that good for Intuit. The stock value is down by 50% on a YTD basis. This has also made investors worry that AI is weakening demand for the company's products.

But the Intuit stock prices have declined so much that some are now considering it to be undervalued. After all, Intuit is still a big player in the game and has even increased its market share in some industries.

The latest results from Intuit should be enough to dismiss any worries about the AI. The company has raised its guidance and also improved the outlook for the remaining FY 2026.

TurboTax Continues To Drive Growth

Also, the revenue from TurboTax is up by 7% y/y, and revenue growth is 10% during the quarter. The FY 2026 sales are expected to jump by 13% - 14% y/y.

TurboTax is one of the major revenue drivers for Intuit. It allows users to connect with a professional tax expert. The user can then get help from them with taxes and other matters. The people who like to work with real professionals will definitely continue to use the service.

But we must also understand that Intuit is not just limited to TurboTax. Another big software under Intuit's umbrella is QuickBooks Online. This software delivered 22% y/y revenue growth.

It is common for businesses to have multiple licenses of the same products. So, that's also something which can bring in more revenue for the company.

The best part of all is that Intuit stock is trading at a forward P/E of 10. This clearly highlights that Intuit stock is undervalued. And when we consider Intuit's strong position in the market, it becomes clear that Intuit stock is a buy!

Also, it seems that the AI fears were just exaggerated, as Intuit continues to improve its revenue and user base. With that in mind, there's no reason to ignore this fintech stock.

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