Intuit Inc. (INTU): A Bull Case Theory

We came across a bullish thesis on Intuit Inc. (INTU) on Twitter by TMTMoats. In this article, we will summarize the bulls’ thesis on INTU. Intuit Inc. (INTU)’s share was trading at $603.11 as of March 19^th. INTU’s trailing and forward P/E were 56.42 and 32.47 respectively according to Yahoo Finance.

Intuit (INTU) has faced underperformance since late last year, but the upcoming tax season presents a catalyst for a rebound. TurboTax, the company’s leading consumer segment, is expected to drive strong Q3 results, benefiting from an increase in complex tax filings. Analysts project $4 billion in consumer revenue, reflecting 8% year-over-year growth, as more taxpayers turn to Intuit for sophisticated tax solutions. This shift toward complex filings boosts average selling prices, contributing to overall revenue expansion.

Beyond tax season, Intuit’s Global Business Solutions (GBS) segment is fueling long-term growth. GBS is forecasted to generate approximately $11 billion in revenue, growing at 16% annually due to its expansion into midsize businesses and rising revenue per customer. This segment has become a critical driver of Intuit’s broader ecosystem, positioning the company for sustained double-digit growth. Additionally, the company’s earnings per share (EPS) are projected to rise by 14%, reaching $19.38, supported by ongoing share buybacks and potential margin expansion.

Despite its recent pullback, Intuit’s valuation has become attractive. The stock currently trades at 28 times earnings, below its historical peak of 35 times and cheaper than the average software ETF valuation of 32 times. This discount, combined with its growth drivers and strong fundamentals, presents a compelling entry point for long-term investors. With tax season set to boost near-term results and GBS driving sustained expansion, Intuit offers an appealing investment opportunity at current levels.

Intuit Inc. (INTU) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 89 hedge fund portfolios held INTU at the end of the fourth quarter which was 87 in the previous quarter. While we acknowledge the risk and potential of INTU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than INTU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.