Tax preparation is a seasonal activity, but tax software maker Intuit has been delivering steady sales and earnings growth going back eight quarters. Intuit is Tuesday's selection for IBD 50 Stocks To Watch.
Intuit jumped 8% after fiscal third-quarter results and broke out on Friday, according to IBD MarketSurge pattern recognition tools. The stock added another 3% in recent action.
Shares are at an all-time high as they now hold in a buy zone above a long and early-stage cup base with an entry at 714.78. The buy zone goes up to 750.52.
The relative strength line jumped as well, and the early-stage base can lead to higher gains.
Intuit Stock Expands AI Offering, Rides Tariff Volatility
Shares also gapped up after the company reported fiscal second-quarter results on Feb. 26, but gave back their 13% gain during a sell-off in early April fueled by tariff fears.
Intuit stock then rallied as tariff delays and pauses lifted stocks. The company also expanded its artificial intelligence offerings through a partnership with Alphabet's Google Cloud Document AI feature and Gemini.
In the third quarter, sales grew 15% to $7.8 billion while earnings per share of $11.65 per share rose 18% from the prior year. The company's outlook for the full year stands at $18.74 billion at the midpoint for sales. That represents 15% in growth, up from 13% earlier.
For the fourth quarter, Intuit predicted sales of $3.74 billion at the midpoint and earnings of $2.66 per share, more or less in line with estimates from analysts polled by FactSet.
Analysts see profits rising 18% in 2025 to earnings of $20.03 per share. In 2026, estimates of $22.94 in earnings per share suggests a 15% increase.
Stock Ratings In The 90s
Intuit offers financial software products for individuals and businesses such as TurboTax and QuickBooks.
The stock has a Composite Rating of 97 and Earnings Per Share Rating of 96. The stock has outperformed 90% of other stocks in the Investor's Business Daily database. Mutual funds own 51% of outstanding shares.
Funds have been net buyers of the stock during the past 13 weeks, going by the price and volume metrics. The stock also holds an Accumulation/Distribution Rating of B-.
In the IBD mutual fund index, the Franklin Growth Fund (FKGRX), the JP Morgan Large Cap Growth Fund (SEEGX) and the American Century Focused Dynamic Growth Fund (ACFSX) hold shares of Intuit stock.
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