Intuit (INTU) Outpaces Stock Market Gains: What You Should Know
Intuit (INTU) closed at $542.94 in the latest trading session, marking a +0.41% move from the prior day. This change outpaced the S&P 500's 0.26% gain on the day.
Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 7.82% over the past month, outpacing the Computer and Technology sector's gain of 2.31% and the S&P 500's gain of 2.37% in that time.
INTU will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2021. In that report, analysts expect INTU to post earnings of $1.59 per share. This would mark a year-over-year decline of 12.15%. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, up 27.55% from the year-ago period.
It is also important to note the recent changes to analyst estimates for INTU. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. INTU currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, INTU is holding a Forward P/E ratio of 49.9. This represents a premium compared to its industry's average Forward P/E of 34.03.
We can also see that INTU currently has a PEG ratio of 3.39. 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. The Computer - Software industry currently had an average PEG ratio of 2.84 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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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