Intuit (INTU) closed at $563.97 in the latest trading session, marking a +2.97% move from the prior day. This move outpaced the S&P 500's daily gain of 0.03%. Meanwhile, the Dow experienced a drop of 0.58%, and the technology-dominated Nasdaq saw an increase of 0.28%.
The maker of TurboTax, QuickBooks and other accounting software's stock has dropped by 18.84% in the past month, falling short of the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 0.6%.
The upcoming earnings release of Intuit will be of great interest to investors. 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.
INTU's full-year Zacks Consensus Estimates are calling for earnings of $23.13 per share and revenue of $21.12 billion. These results would represent year-over-year changes of +14.79% and +12.16%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Intuit. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.21% upward. Intuit currently has a Zacks Rank of #4 (Sell).
In the context of valuation, Intuit is at present trading with a Forward P/E ratio of 23.68. Its industry sports an average Forward P/E of 21.77, so one might conclude that Intuit is trading at a premium comparatively.
It is also worth noting that INTU currently has a PEG ratio of 1.67. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Software industry stood at 1.76 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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