Intuit (INTU) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Intuit (INTU) closed at $421.74, marking a -1.39% move from the previous day. This move lagged the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.61%, and the Nasdaq, a tech-heavy index, lost 2.13%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 10.03% in the past month. In that same time, the Computer and Technology sector gained 17.35%, while the S&P 500 gained 7%.
Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. This is expected to be February 23, 2023. In that report, analysts expect Intuit to post earnings of $1.43 per share. This would mark a year-over-year decline of 7.74%. Our most recent consensus estimate is calling for quarterly revenue of $2.9 billion, up 8.44% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.64 per share and revenue of $14.1 billion. These totals would mark changes of +15.11% and +10.8%, respectively, from last year.
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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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 remained stagnant. Intuit currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 31.35. Its industry sports an average Forward P/E of 29.01, so we one might conclude that Intuit is trading at a premium comparatively.
We can also see that INTU currently has a PEG ratio of 2.12. 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 industry currently had an average PEG ratio of 2.12 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 165, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Intuit Inc. (INTU) : Free Stock Analysis Report
