Intuit (INTU) Outpaces Stock Market Gains: What You Should Know
Intuit (INTU) closed at $251.21 in the latest trading session, marking a +1.4% move from the prior day. This change outpaced the S&P 500's 0.1% gain on the day. Meanwhile, the Dow gained 0.15%, and the Nasdaq, a tech-heavy index, lost 0.66%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 6.78% in the past month. In that same time, the Computer and Technology sector gained 6.31%, while the S&P 500 gained 3.95%.
Investors will be hoping for strength from INTU as it approaches its next earnings release, which is expected to be May 23, 2019. On that day, INTU is projected to report earnings of $0.86 per share, which would represent a year-over-year decline of 82.16%. Meanwhile, our latest consensus estimate is calling for revenue of $3.24 billion, up 10.65% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $6.57 per share and revenue of $6.66 billion, which would represent changes of +17.11% and +11.63%, respectively, from the prior year.
Any recent changes to analyst estimates for INTU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. INTU is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, INTU is holding a Forward P/E ratio of 37.73. Its industry sports an average Forward P/E of 30.85, so we one might conclude that INTU is trading at a premium comparatively.
Also, we should mention that INTU has a PEG ratio of 2.33. 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 2.29 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 21, which puts it in the top 9% 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.
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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