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Intuit (INTU) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Intuit (INTU - Free Report) closed at $507.48, marking a -1.65% move from the previous day. This change lagged the S&P 500's daily loss of 0.15%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 20.59% over the past month, lagging the Computer and Technology sector's loss of 14.1% and the S&P 500's loss of 7.66% in that time.

Investors will be hoping for strength from Intuit as it approaches its next earnings release. The company is expected to report EPS of $1.88, up 176.47% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $2.74 billion, up 73.58% from the year-ago period.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $11.68 per share and revenue of $12.28 billion. These results would represent year-over-year changes of +19.92% and +27.45%, respectively.

Investors should also note any recent changes to analyst estimates for Intuit. 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.36% higher. Intuit is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 44.18 right now. Its industry sports an average Forward P/E of 31.57, so we one might conclude that Intuit is trading at a premium comparatively.

We can also see that INTU currently has a PEG ratio of 2.82. 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 Computer - Software was holding an average PEG ratio of 2.56 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 35% 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.

To follow INTU in the coming trading sessions, be sure to utilize Zacks.com.


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