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Intuit (INTU) Gains As Market Dips: What You Should Know

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Intuit (INTU - Free Report) closed the most recent trading day at $506.69, moving +0.31% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.35%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 5.9% over the past month, outpacing the Computer and Technology sector's gain of 4.23% and the S&P 500's gain of 3.36% in that time.

INTU will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.59, down 12.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, up 27.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.35 per share and revenue of $9.39 billion. These totals would mark changes of +18.96% and +22.28%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for INTU. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. The Zacks Consensus EPS estimate remained stagnant within the past month. INTU is currently sporting a Zacks Rank of #1 (Strong Buy).

Investors should also note INTU's current valuation metrics, including its Forward P/E ratio of 54.02. For comparison, its industry has an average Forward P/E of 42.91, which means INTU is trading at a premium to the group.

Investors should also note that INTU has a PEG ratio of 3.64 right now. 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 2.45 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 109, putting it in the top 43% 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.

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