Why Intuit Stock Topped the Market on Tuesday

Intuit (NASDAQ: INTU) stock was off to a fine start as the Memorial Day-shortened trading week began. The tax and finance software specialist was the subject of a new, bullish analyst note, and investors reacted to this by pushing the stock's price up about 4.4% on the day. That easily beat the 2% increase of the S&P 500 index.

Price increases and a strong third quarter

The analyst behind the new Intuit note was Mizuho's Siti Panigrahi, who reiterated his outperform (read: buy) recommendation on the stock at a price target of $825 per share. That anticipates upside of nearly 10% on today's closing price.

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Panigrahi might have felt compelled to double down on his Intuit take, as the stock just hit its one-year high. That wasn't a great surprise. At the end of last week, the company published fiscal-third-quarter results, posting impressive double-digit increases on both the top and bottom lines. Both key metrics beat consensus analyst estimates; ditto for fourth-quarter guidance.

According to reports, Panigrahi was particularly heartened by the company's recent pricing increases for its foundational QuickBooks accounting software. These will kick in with the start of Intuit's fiscal 2026 on July 1. In his view, the move demonstrates management's ability to sustain double-digit percentage growth in its crucial global solutions group business.

New peaks ahead?

Intuit's third quarter is important and indicative, since it covers tax season (the company operates the storied Turbo Tax platform). Given its solid and impressive performance during the quarter, investors are right to consider management's ambitious guidance to be realistic. This feels like a business that will continue to power along, and I'd expect more stock price peaks in the coming weeks and months.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intuit. The Motley Fool has a disclosure policy.