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Intuit (INTU) Gains But Lags Market: What You Should Know

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In the latest trading session, Intuit (INTU) closed at $537.73, marking a +0.58% move from the previous day. This change lagged the S&P 500's 0.83% gain on the day.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 5.81% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.26% and lagged the S&P 500's loss of 3.68% in that time.

INTU will be looking to display strength as it nears its next earnings release. In that report, analysts expect INTU to post earnings of $0.97 per share. This would mark year-over-year growth of 3.19%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.81 billion, up 36.85% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.26 per share and revenue of $11.18 billion. These totals would mark changes of +15.61% and +16.04%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for INTU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. INTU is currently a Zacks Rank #5 (Strong Sell).

In terms of valuation, INTU is currently trading at a Forward P/E ratio of 47.5. This valuation marks a premium compared to its industry's average Forward P/E of 33.91.

Investors should also note that INTU has a PEG ratio of 3.21 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 2.89 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 116, which puts it in the top 46% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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