The latest trading session saw Intuit (INTU – Free Report) ending at $556.24, denoting a -0.94% adjustment from its last day’s close. This move lagged the S&P 500’s daily loss of 0.23%. Elsewhere, the Dow lost 0.91%, while the tech-heavy Nasdaq added 0.1%.
The maker of TurboTax, QuickBooks and other accounting software’s shares have seen a decrease of 7.89% over the last month, surpassing the Computer and Technology sector’s loss of 16.18% and the S&P 500’s loss of 12.13%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. The company’s upcoming EPS is projected at $11.01, signifying a 11.44% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $7.56 billion, indicating a 12.19% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $19.31 per share and a revenue of $18.3 billion, representing changes of +13.99% and +12.4%, respectively, from the prior year.
Investors might also notice recent changes 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 company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% lower. Intuit is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Intuit is presently being traded at a Forward P/E ratio of 29.08. This indicates a premium in contrast to its industry’s Forward P/E of 22.6.
We can also see that INTU currently has a PEG ratio of 2. 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. The average PEG ratio for the Computer – Software industry stood at 1.95 at the close of the market yesterday.
The Computer – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 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.
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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