With a market capitalization of $183.2 billion, Mountain View, California-based Intuit Inc. INTU is a global financial and business software company that provides tools and services for small businesses, consumers and accounting professionals. Offerings include QuickBooks for business management, TurboTax for tax preparation, Credit Karma for personal finance solutions, and ProConnect for professional accountants.

Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Intuit fits that criteria perfectly and tops the mark. Intuit excels at leveraging technology and innovation to empower individuals and businesses worldwide, addressing financial challenges while promoting economic opportunity and sustainability.

Still, the company posted an 8.4% decline from its 52-week high of $714.78 reached on November 13th. INTU has seen its share price rise 5.1% over the past three months, underperforming the broader iShares Expanded Tech Software sector ETFs IHR Return of 29.7% over the same period.

Looking over the long term, Intuit shares are up 4.7% year-to-date, lagging IGV’s 35.4% gain. Additionally, INTU shares are up 14.8% over the past 52 weeks, underperforming IGV’s return of nearly 40% over the same period.

Intuit stock has shown resilience of late, holding levels above its 50-day and 200-day moving averages since early November.

Intuit has underperformed due to challenges in maintaining strong revenue growth amid increasing competition in its core tax and financial software markets and growing skepticism about the viability of its large investments in generative AI technologies. Economic headwinds, including higher interest rates and reduced consumer spending, have dampened demand for its small business and consumer products.

Additionally, the stock fell more than 5% after issuing guidance that fell short of expectations, calling for fourth-quarter earnings of $2.55 to $2.61 per share and revenue of $3.8 to $3.8% It forecast $3.9 billion, below Wall Street forecasts. Although the company beat third-quarter estimates on Nov. 21 with earnings per share of $2.50 and revenue of $3.3 billion, it expects a single-digit decline in sales in its consumer segment. In addition, concerns about competition from a planned federal tax filing app put additional pressure on the stock.

In comparison, its competitor Palantir Technologies Inc. PLTR has outperformed INTU, with shares of PLTR up 279.6% over the past 52 weeks and up 306.8% year-to-date.

Despite INTU’s underperformance over the past year, analysts are bullish, earning a Strong Buy consensus rating from 28 analysts. It is currently trading below the average price target of $733.60.

At the time of publication, Sohini Mondal did not hold (either directly or indirectly) any positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. For more information, please see Barchart’s disclosure policy here.

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