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Intuit (INTU) Dips More Than Broader Markets: What You Should Know

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Intuit (INTU) closed the most recent trading day at $379.87, moving -0.9% from the previous trading session. This change lagged the S&P 500's 0.3% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 1.26% in the past month. In that same time, the Computer and Technology sector gained 2.76%, while the S&P 500 gained 1.51%.

Investors will be hoping for strength from Intuit as it approaches its next earnings release. The company is expected to report EPS of $0.99, down 49.75% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.35 billion, down 8.1% from the year-ago period.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $11.72 per share and revenue of $12.67 billion. These results would represent year-over-year changes of +20.33% and +31.48%, respectively.

It is also important to note the recent changes to analyst estimates for Intuit. These revisions help to show the ever-changing nature of 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, 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 past month, the Zacks Consensus EPS estimate remained stagnant. Intuit is holding a Zacks Rank of #3 (Hold) right now.

Digging into valuation, Intuit currently has a Forward P/E ratio of 32.71. For comparison, its industry has an average Forward P/E of 24.05, which means Intuit is trading at a premium to the group.

Investors should also note that INTU has a PEG ratio of 2.1 right now. 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. INTU's industry had an average PEG ratio of 2.08 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 132, which puts it in the bottom 48% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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