Intuit (INTU) Outperforms Broader Market: What You Need to Know
Intuit (INTU) ended the recent trading session at $635.82, demonstrating a +0.83% swing from the preceding day's closing price. This change outpaced the S&P 500's 0.29% gain on the day. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq added 0.43%.
The maker of TurboTax, QuickBooks and other accounting software's shares have seen an increase of 1.05% over the last month, not keeping up with the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 2.08%.
Analysts and investors alike will be keeping a close eye on the performance of Intuit in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.29, signifying a 4.09% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $3.39 billion, indicating a 11.36% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $16.38 per share and revenue of $16.04 billion. These totals would mark changes of +13.75% and +11.63%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Intuit currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Intuit is at present trading with a Forward P/E ratio of 38.5. This denotes a premium relative to the industry's average Forward P/E of 33.52.
It's also important to note that INTU currently trades at a PEG ratio of 2.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer - Software industry stood at 2.34 at the close of the market yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 76, this industry ranks in the top 31% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Intuit Inc. (INTU) : Free Stock Analysis Report
