Intuit (INTU) closed the most recent trading day at $502.98, moving -6.63% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.13%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.72%.
Shares of the maker of TurboTax, QuickBooks and other accounting software witnessed a loss of 18.68% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.88%, and the S&P 500's gain of 0.78%.
Market participants will be closely following the financial results of Intuit in its upcoming release. The company is expected to report EPS of $3.65, up 9.94% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $4.53 billion, reflecting a 14.22% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $23.13 per share and a revenue of $21.13 billion, indicating changes of +14.79% and +12.21%, respectively, from the former year.
Investors should also pay attention to any latest changes in 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 shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.24% increase. Intuit is currently a Zacks Rank #4 (Sell).
Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 23.29 right now. For comparison, its industry has an average Forward P/E of 21.32, which means Intuit is trading at a premium to the group.
Investors should also note that INTU has a PEG ratio of 1.64 right now. 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 Computer - Software was holding an average PEG ratio of 1.81 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 150, positioning it in the bottom 39% 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.
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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