Intuit (INTU) closed at $677.72 in the latest trading session, marking a +1.04% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.58% for the day. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.89%.
The maker of TurboTax, QuickBooks and other accounting software's shares have seen a decrease of 3.46% over the last month, not keeping up with the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. It is anticipated that the company will report an EPS of $3.1, marking a 24% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.76 billion, reflecting a 14.55% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.08 per share and a revenue of $21.1 billion, signifying shifts of +14.54% and +12.07%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Intuit. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Intuit is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Intuit currently has a Forward P/E ratio of 29.06. This indicates a premium in contrast to its industry's Forward P/E of 28.09.
It is also worth noting that INTU currently has a PEG ratio of 1.93. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.1.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 98, this industry ranks in the top 40% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Intuit Inc. (INTU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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