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Intuit (INTU) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Intuit (INTU - Free Report) closed at $371.19, marking a +1.14% move from the previous day. This move outpaced the S&P 500's daily gain of 0.25%. Meanwhile, the Dow lost 0.26%, and the Nasdaq, a tech-heavy index, lost 0.54%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 22.46% over the past month, lagging the Computer and Technology sector's loss of 13.61% and the S&P 500's loss of 11.03% in that time.

Intuit will be looking to display strength as it nears its next earnings release, which is expected to be May 24, 2022. In that report, analysts expect Intuit to post earnings of $7.60 per share. This would mark year-over-year growth of 25.21%. Meanwhile, our latest consensus estimate is calling for revenue of $5.52 billion, up 32.24% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.66 per share and revenue of $12.29 billion. These totals would mark changes of +19.71% and +27.61%, respectively, from last year.

It is also important to note the 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Intuit currently has a Zacks Rank of #4 (Sell).

In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 31.47. Its industry sports an average Forward P/E of 28.38, so we one might conclude that Intuit is trading at a premium comparatively.

It is also worth noting that INTU currently has a PEG ratio of 2.04. 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 2.09 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 150, putting it in the bottom 41% 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.

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