Is Intuit Stock a Buying Opportunity After 60% Plunge?

Intuit (INTU) stock has plunged approximately 60% from its 52-week high of $813, now trading at $332 in extended trading. Based on management's raised FY26 non-GAAP EPS guidance of $23.80 to $23.85, the stock trades at roughly 14 times forward earnings—a severe compression from its four-year historical average of over 30x.

Recommendation Change

No official recommendation change has been announced by analysts yet, but the sharp valuation decline raises the question of whether the stock is undervalued. Historically, Intuit traded at an average P/E multiple above 30x, making the current 14x multiple a significant discount.

Analyst Rationale

The current valuation reflects extreme market pessimism, pricing in worst-case scenarios with a heavy focus on weakness in the DIY tax business. However, the raised guidance suggests that management sees a more optimistic outlook, potentially indicating that the market's fears are overblown.

Context

The stock has underperformed recently, but the company continues to grow revenue and earnings. Other analysts may have differing views, but the fundamentals remain solid.

What We Conclude

While the stock appears cheap on a forward earnings basis, investors should remain cautious as pessimism could persist if DIY tax headwinds continue. Close monitoring of upcoming reports and guidance is advised.