Intuit (INTU) closed at $647.10 in the latest trading session, marking a +2.09% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.62%. Meanwhile, the Dow gained 0.99%, and the Nasdaq, a tech-heavy index, added 0.65%.
Shares of the maker of TurboTax, QuickBooks and other accounting software witnessed a loss of 3.41% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.47%, and the S&P 500's gain of 0.59%.
The investment community will be closely monitoring the performance of Intuit in its forthcoming earnings report. It is anticipated that the company will report an EPS of $3.65, marking a 9.94% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.53 billion, indicating a 14.23% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.1 per share and revenue of $21.12 billion. These totals would mark changes of +14.64% and +12.16%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Intuit presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Intuit is currently exchanging hands at a Forward P/E ratio of 27.44. This denotes a premium relative to the industry average Forward P/E of 22.82.
Also, we should mention that INTU 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 1.87.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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