Back to top

Image: Bigstock

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

Read MoreHide Full Article

Intuit (INTU - Free Report) closed at $455.82 in the latest trading session, marking a -0.83% move from the prior day. This change lagged the S&P 500's 0.45% gain on the day. At the same time, the Dow added 0.8%, and the tech-heavy Nasdaq gained 1.99%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 9.67% over the past month, outpacing the Computer and Technology sector's gain of 3.21% and the S&P 500's gain of 4.25% in that time.

Investors will be hoping for strength from Intuit as it approaches its next earnings release. On that day, Intuit is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 25.45%. Our most recent consensus estimate is calling for quarterly revenue of $2.64 billion, up 9.41% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $14.22 per share and revenue of $14.3 billion. These totals would mark changes of +20% and +12.35%, respectively, from last year.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

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 has moved 0.71% higher within the past month. Intuit is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, Intuit is holding a Forward P/E ratio of 32.33. This represents a premium compared to its industry's average Forward P/E of 27.4.

Meanwhile, INTU's PEG ratio is currently 2.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Software stocks are, on average, holding a PEG ratio of 2.32 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 88, 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Intuit Inc. (INTU) - free report >>

Published in