Intuit Inc. Stock Analysis: Is INTU Undervalued Ahead of Earnings?

Intuit Inc. Stock Analysis: Is INTU Undervalued Ahead of Earnings?

Market Overview

Following a strong bearish rally beginning on 29 December, Intuit Inc. (NASDAQ: INTU) has experienced a notable upside pullback. This recent price recovery is likely driven by investor anticipation ahead of the company’s earnings report scheduled for 26 February 2026.

With volatility increasing ahead of earnings, traders are now questioning whether this marks the beginning of a larger-scale bullish reversal for Intuit shares.

Technical Analysis: Signs of a Potential Bullish Reversal

1. RSI Indicates Extreme Oversold Conditions

The Relative Strength Index (RSI) recently printed a minimum reading of 15, signalling extremely oversold conditions.

• RSI below 30 typically indicates oversold territory

• A reading of 15 suggests strong selling exhaustion

• Historically, such levels often precede technical rebounds

This supports the case for a potential short-term bullish reversal.

2. MACD Histogram Turning Bullish

The MACD histogram has begun printing bullish bars, indicating strengthening upward momentum. When combined with oversold RSI conditions, this adds further confirmation of a possible reversal setup.

3. Directional Movement Index (DMI) Convergence

The DI+ and DI- lines are beginning to converge. A bullish crossover could confirm a shift from bearish dominance to renewed buying pressure.

Key Price Levels to Watch

Major Resistance Levels:

• $411.54

• $520.85

• $619.64

These price zones serve as upside targets if bullish momentum continues.

Strong Support Level:

• $353.47

This remains a critical downside level. A break below this support would invalidate the short-term bullish thesis.

Earnings Forecast: What Analysts Expect

According to 8 analyst estimates, Intuit is expected to report:

• Earnings Per Share (EPS): $2.23

• Previous year EPS: $2.07

• Expected YoY growth: +7.73%

Despite this anticipated growth, the stock price has fallen 62.34%, declining from $636.26 (26 February 2025) to $391.92 (26 February 2026).

This disconnect between earnings growth and price performance may suggest that INTU stock is currently undervalued, particularly if the upcoming earnings report exceeds expectations.

Fundamental Valuation

Intuit’s valuation metrics remain attractive:

• P/E Ratio: 26.83 (fair value range)

• Forward P/E Ratio: 14.87 (suggesting undervaluation based on projected earnings)

Implied Price Targets:

• High Target: $709.25 (+80.43%)

• Low Target: $551.19 (+40.22%)

These projections align closely with the average analyst price target of $705.33, reinforcing the undervaluation thesis.

Is Intuit Stock Undervalued?

Despite a substantial price decline over the past year, Intuit continues to demonstrate:

• Positive earnings growth expectations

• Attractive forward valuation

• Technical reversal signals

• Strong long-term fundamentals

If earnings outperform expectations, upside potential appears significant. Conversely, downside risk may be limited given the already substantial correction in share price.

Outlook for Traders and Investors

With bullish technical indicators aligning with strong fundamental valuation metrics, Intuit may be approaching a pivotal turning point.

• Short-term traders may look to capitalise on earnings-driven volatility and technical momentum.

• Long-term investors may see current price levels as an attractive accumulation opportunity, provided earnings confirm growth stability.

As always, risk management remains essential, particularly around earnings events where volatility can be elevated.

Final Thoughts

Intuit appears technically oversold, fundamentally undervalued, and positioned ahead of a potentially strong earnings catalyst. Should the company deliver solid results on 26 February 2026, a broader bullish reversal could unfold in the weeks and months ahead.