Stock of the Day - September 12, 2023

Intuit (INTU)

$330.17

+$19.73 (+6.4%)

Market Cap: $82.96B

About Intuit

Intuit Inc. provides financial management and compliance products and services for consumers, small businesses, self-employed, and accounting professionals in the United States, Canada, and internationally.

The company operates in four segments: Small Business & Self-Employed, Consumer, Credit Karma, and ProTax. The Small Business & Self-Employed segment provides QuickBooks services, that includes financial and business management online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for small businesses; and Mailchimp services, such as e-commerce, marketing automation, and customer relationship management. This segment also offers QuickBooks online services and desktop software solutions comprising QuickBooks Online Advanced, a cloud-based solution; QuickBooks Enterprise, a hosted solution; and QuickBooks Self-Employed solution; payment-processing solutions, including credit and debit cards, Apple Pay, and ACH payment services; and financial supplies and financing for small businesses, as well as electronic filing of federal and state income tax returns. The Consumer segment provides TurboTax income tax preparation products and services. The Credit Karma segment offers consumers with a personal finance platform that provides personalized recommendations of home, auto, and personal loans, as well as credit cards and insurance products. The ProTax segment provides Lacerte, ProSeries, and ProFile desktop tax-preparation software products; and ProConnect Tax Online tax products, electronic tax filing service, and bank products and related services. It sells products and services through various sales and distribution channels, including multi-channel shop-and-buy experiences, websites and call centers, mobile application stores, and retail and other channels. The company was founded in 1983 and is headquartered in Mountain View, California.

Intuit Bull Case

Here are some ways that investors could benefit from investing in Intuit Inc.:

Intuit Inc. recently reported strong financial performance for the quarter ended August 25, 2026, beating consensus estimates with earnings per share of $4.03 compared to the expected $3.58 and revenue of $4.35 billion against an estimate of $4.27 billion, demonstrating robust top-line growth of 13.7% year-over-year and a net margin of 21.29%.
The company is expanding its AI capabilities through the Accountant Suite, which is gaining adoption among accounting professionals by offering AI-powered and agentic workflows that integrate with QuickBooks, payroll, and marketing analytics, potentially increasing customer engagement and strengthening the broader Intuit ecosystem.
Intuit Inc. has increased its quarterly dividend to $1.38 per share, payable on October 16, 2026, representing a significant boost from the previous $1.20 payout and resulting in an annualized dividend yield of approximately 1.82% based on the current stock price of $305.99.
Institutional investors have shown renewed confidence in the stock, with firms like Douglas Lane & Associates LLC increasing their holdings by 24.8% and Schaper Benz & Wise Investment Counsel Inc. growing their positions by 13.0% in the third quarter, indicating a shift toward accumulation despite recent volatility.
Shares of Intuit Inc. have gained nearly 9% over the last three months, outperforming the broader technology sector during a period of market weakness, which suggests relative investor confidence in the company's mid-market and financial services growth trajectory.

Intuit Bear Case

Investors should be bearish about investing in Intuit Inc. for these reasons:

The stock is currently trading at $305.99, which is significantly below its 50-day simple moving average of $322.04 and 200-day simple moving average of $332.76, indicating that the stock is in a technical downtrend and trading below key long-term support levels.
Analysts have downgraded their outlook on the stock, with Bank of America cutting its rating from "buy" to "neutral" and setting a price target of $360.00, while the overall consensus rating has shifted to "Hold" with an average price target of $431.55, reflecting concerns about slowing customer additions and premium valuation.
Short interest in Intuit Inc. has increased significantly, with shares shorted rising to 7,277,607 as of September 30, 2026, up from 7,016,125 in the previous month, suggesting that a growing number of traders are betting against the stock's future performance.
Insider selling activity has been notable, with Director Richard L. Dalzell selling 285 shares on September 8, 2026, and Chief Accounting Officer Lauren D. Hotz selling 907 shares on August 27, 2026, which may signal a lack of confidence from company leadership at current price levels.
Intuit Inc. faces headwinds from escalating geopolitical tensions and weak technology-sector sentiment, which could limit near-term upside potential and create a challenging environment for growth-oriented software stocks like Intuit.

PayPal Is Your Chance To Prove You're A True Value Investor

Written By Gabriel Osorio-Mazilli on 8/29/2023

payment processing graphic with coins

One of the central premises of being a true value investor is a willingness to go against the popular opinion, no matter how sound and justifiable this one may be. Today, those who call themselves value investors are being tested. PayPal (NASDAQ: PYPL) is proving to be a name ripe for acquisition.

Pencils out everyone, there are many lessons to be learned digging into PayPal's fundamentals, especially its financial developments and market share positioning.

Bears argue that competition against industry giants like Capital One Financial (NYSE: COF) and Discover Financial Services (NYSE: DFS) is eating away at PayPal's potential. Still, markets have a different opinion on the matter. Noise aside, analysts are clear on where PayPal should be trading time for investors to update their buy lists.

Dominant Positioning

According to sources, PayPal owns over half of the online payment processing platform market today. This dynamic begins to create the proverbial moat that all investors look for, as it is one of the main commandments preached by Warren Buffett when finding a solid business.

In the United States alone, 56% of citizens are reported to have a PayPal account and use it often; other lesser statistics remain to expand PayPal's dominance over 200 different countries. If size mattered, PayPal would be set to shine. However, size is nothing without growth.

Expecting a negative follow-up? Well, too bad. PayPal is growing at faster clips than anyone had thought; in the last quarter alone, the company reported a massive 24% jump in earnings per share. The stock, on the other hand, barely moved during the past twelve months.

Owning a large chunk of the market comes from PayPal's reliability and quality stamp, two factors attracting more and more customers lately. Active accounts grew by 6% when lockdowns subsided, reiterating the commonality of this platform's use.

Transactions within these active accounts also grew by as much as 12%, an evident disconnect between the company developments and the stock price begins to show its face. Double-digit fundamental expansion still needs to be shown in the stock's lackluster 44% underperformance against the S&P 500 during the past twelve months.

Undervalued Growth

Microsoft (NASDAQ: MSFT) has used PayPal payment services for the past sixteen years. In a recent press release, Microsoft's SVP stated, "We are thrilled to expand our partnership with Microsoft to offer them access to our full suite of capabilities that will create a beautiful customer experience across the entire shopping journey."

Full access to one of the world's largest software company's revenue streams should have been enough to send the stock flying. When good news is insufficient to send the stock higher, investors can assume that the point of maximum pessimism (also known as the bottom) is near.

PayPal analyst ratings have landed on a consensus price target of $92.03 a share, implying a needed 50.5% jump in the coming months to close this valuation gap. These trends have pushed analysts to this bullishness, though growth remains the common thread.

EPS is expected to jump by as much as 17% for the next twelve months. Again, this is one business showing double-digit jumps across all its drivers. Yet, the stock refuses to give shareholders a break.

Management expects a total of $5 billion to be allocated toward repurchasing shares; 22 million have been repurchased during the past three months alone. This can be taken as a powerful message from insiders, implying that the stock is undervalued and will soon be set for an overdue rally.

Markets expect similarly big things from PayPal, rewarding the stock with a superior forward price-to-earnings ratio. This multiple seeks to value the next twelve months of expected earnings; here is where PayPal stands.

Trading against Capital One and Discover, who carry a respective 7.5x and 6.9x multiple, PayPal's superior 10.9x valuation says the following. Relative to similar names, a market willingness to pay a premium price for PayPal points to a perception of higher quality and growth.

Alex Chriss, former CEO at Intuit (NASDAQ: INTU), will reign as the new PayPal CEO starting in September. His new mantra? To duplicate his success record at Intuit and bring PayPal's chart to reflect Intuit's.

Will investors stand against the compressed stock price and let these trends develop into what can be a monster rally? Only time can tell, but this boat is sure to sail.

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