Buy Big Tech Stock INTU On the Dip Now Before Earnings

TurboTax owner and financial technology titan Intuit Inc. INTU stock has dropped 12% after hitting fresh highs at the end of July.

The downturn provides investors with a great opportunity to buy Intuit stock on the dip heading into its fourth-quarter fiscal 2025 earnings release on August 21.

The tax software stock has more than tripled the Tech sector over the past 20 years. Intuit’s expanding portfolio and AI enhancements will help it keep churning out double-digit sales and earnings growth. Plus, it looks like it’s finding support at a critical technical range.

Buy INTU Stock and Hold for AI Growth and Tax Stability

Intuit averaged 16% revenue growth over the last decade, alongside roughly 15% average GAAP earnings expansion, driven by the consistent and evergreen nature of its TurboTax software.

INTU’s steady growth is impressive even among its mega-cap tech peers like Microsoft MSFT.

INTU expanded its reach significantly over the last five years. It is now a one-stop shop for business and consumer finance, email marketing, and more via TurboTax, Credit Karma, QuickBooks, and Mailchimp, which boast roughly 100 million customers total.

Intuit is crucially expanding its artificial intelligence efforts to make sure it doesn’t lose ground to potential upstart AI rivals in tax prep software and more. The company’s AI-powered TurboTax Live is an assisted tax preparation service that combines human experts with AI automation. Its sales surged 47% last quarter to $2 billion.

AI-powered innovations and personalized offerings spurred growth across Intuit's entire portfolio. “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,” CEO Sasan Goodarzi said in prepared remarks.

INTU is projected to grow its sales by 15% in FY25 and 12% in fiscal 2026 to reach $20.94 billion vs. $16.29 billion last year, extending its streak of double-digit revenue growth.

The technology powerhouse is projected to boost its adjusted earnings by 18% in its soon-to-be-reported fiscal 2025 and 14% next year. Plus, its upward earnings estimate revisions earn it a Zacks Rank #2 (Buy), and it has topped our bottom-line estimates in 19 out of the past 20 quarters. 

Buy the Financial Tech Stock On the Dip Now

Intuit climbed roughly 3,000% in the past 20 years to more than triple Tech’s 834% and crush Microsoft’s 1,800%. Its outperformance remains significant over the past 10 years, up 700% vs. Tech's 410%.

INTU was tracking Tech over the last few years until its recent tumble from its late July records.

The stock fell not too long after INTU finally broke out meaningfully above its 2021 highs earlier this summer after meeting resistance there throughout 2024.

INTU is finding support at its 21-week moving average and its previous peaks after falling from some of its most overbought RSI levels to its most oversold.

One of the biggest things holding INTU stock back might be its valuation. Some could find it harder to justify paying up for Intuit given the uncertainty surrounding the long-term potential impact AI might have on its core tax segment and beyond.

Still, Intuit trades at a small discount to its 10-year median and 50% below its highs at 41.7X forward earnings. Wall Street has been willing to pay a huge premium for Intuit’s consistent growth.  

Now might be the time to consider buying Intuit stock on the dip heading into earnings, especially with the broader tech sector trading at all-time highs. 

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This article originally published on Zacks Investment Research (zacks.com).

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