Intuit (INTU) closed the most recent trading day at $392.47, moving -0.85% from the previous trading session. This move lagged the S&P 500's daily loss of 0.03%. Meanwhile, the Dow gained 0.45%, and the Nasdaq, a tech-heavy index, lost 0.05%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 6.2% over the past month. This has lagged the Computer and Technology sector's gain of 4.69% and the S&P 500's gain of 6.23% in that time.
Intuit will be looking to display strength as it nears its next earnings release, which is expected to be November 29, 2022. On that day, Intuit is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.5 billion, up 24.42% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.70 per share and revenue of $14.51 billion. These totals would mark changes of +15.61% and +14%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Intuit currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Intuit currently has a Forward P/E ratio of 28.91. This valuation marks a premium compared to its industry's average Forward P/E of 25.3.
It is also worth noting that INTU currently has a PEG ratio of 1.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 36% 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.
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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