Intuit (INTU) closed at $643.22 in the latest trading session, marking a -0.02% move from the prior day. This change was narrower than the S&P 500’s daily loss of 0.26%. Meanwhile, the Dow lost 0.16%, and the Nasdaq, a tech-heavy index, lost 0.04%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 4.28% in the past month. In that same time, the Computer and Technology sector gained 2.19%, while the S&P 500 gained 4.82%.
Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. In that report, analysts expect Intuit to post earnings of $1.88 per share. This would mark year-over-year growth of 176.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.74 billion, up 73.58% from the year-ago period.
INTU’s full-year Zacks Consensus Estimates are calling for earnings of $11.66 per share and revenue of $12.28 billion. These results would represent year-over-year changes of +19.71% and +27.45%, respectively.
Investors should also note any recent changes to analyst estimates for Intuit. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.33% lower. Intuit currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Intuit is holding a Forward P/E ratio of 55.19. This valuation marks a premium compared to its industry’s average Forward P/E of 37.15.
It is also worth noting that INTU currently has a PEG ratio of 3.52. 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. Computer – Software stocks are, on average, holding a PEG ratio of 3.09 based on yesterday’s closing prices.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 101, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow INTU in the coming trading sessions, be sure to utilize Zacks.com.
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