Intuit (INTU) closed at $656.04 in the latest trading session, marking a -3.37% move from the prior day. At the same time, the Dow lost 0.16%, and the tech-heavy Nasdaq gained 0.55%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 0.58% lagged the Computer and Technology sector's gain of 6.92% and the S&P 500's gain of 3.83%.
Market participants will be closely following the financial results 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. Alongside, our most recent consensus estimate is anticipating revenue of $3.76 billion, indicating a 14.55% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $23.09 per share and revenue of $21.1 billion, indicating changes of +14.59% and +12.07%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Intuit is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Intuit is currently being traded at a Forward P/E ratio of 29.41. This represents no noticeable deviation compared to its industry average Forward P/E of 29.41.
It's also important to note that INTU currently trades at a PEG ratio of 1.95. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.16 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 90, putting it in the top 37% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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