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Intuit (INTU) Gains But Lags Market: What You Should Know
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Intuit (INTU - Free Report) closed at $562.30 in the latest trading session, marking a +0.26% move from the prior day. This change lagged the S&P 500's 0.94% gain on the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 9.3% over the past month. This has lagged the Computer and Technology sector's loss of 7.56% and the S&P 500's loss of 4.63% in that time.
Investors will be hoping for strength from Intuit as it approaches its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect Intuit to post earnings of $1.88 per share. This would mark year-over-year growth of 176.47%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 73.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.68 per share and revenue of $12.28 billion, which would represent changes of +19.92% and +27.45%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. Intuit currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 48.02. For comparison, its industry has an average Forward P/E of 35.23, which means Intuit is trading at a premium to the group.
It is also worth noting that INTU currently has a PEG ratio of 3.07. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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Intuit (INTU) Gains But Lags Market: What You Should Know
Intuit (INTU - Free Report) closed at $562.30 in the latest trading session, marking a +0.26% move from the prior day. This change lagged the S&P 500's 0.94% gain on the day. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq lost 0.55%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 9.3% over the past month. This has lagged the Computer and Technology sector's loss of 7.56% and the S&P 500's loss of 4.63% in that time.
Investors will be hoping for strength from Intuit as it approaches its next earnings release, which is expected to be February 24, 2022. In that report, analysts expect Intuit to post earnings of $1.88 per share. This would mark year-over-year growth of 176.47%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 73.58% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.68 per share and revenue of $12.28 billion, which would represent changes of +19.92% and +27.45%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.36% higher. Intuit currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 48.02. For comparison, its industry has an average Forward P/E of 35.23, which means Intuit is trading at a premium to the group.
It is also worth noting that INTU currently has a PEG ratio of 3.07. 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. Computer - Software stocks are, on average, holding a PEG ratio of 2.7 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 37% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.