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Why Intuit (INTU) Dipped More Than Broader Market Today

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In the latest market close, Intuit (INTU - Free Report) reached $653.37, with a -0.27% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.21%. Meanwhile, the Dow experienced a drop of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.26%.

Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 6.84% in the past month. In that same time, the Computer and Technology sector gained 6.51%, while the S&P 500 gained 5.04%.

The investment community will be closely monitoring the performance of Intuit in its forthcoming earnings report. The company is scheduled to release its earnings on May 23, 2024. The company is forecasted to report an EPS of $9.34, showcasing a 4.71% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $6.63 billion, showing a 10.25% escalation compared to the year-ago quarter.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $16.41 per share and revenue of $16.04 billion. These results would represent year-over-year changes of +13.96% and +11.62%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Intuit. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.01% higher. At present, Intuit boasts a Zacks Rank of #2 (Buy).

From a valuation perspective, Intuit is currently exchanging hands at a Forward P/E ratio of 39.92. For comparison, its industry has an average Forward P/E of 29.15, which means Intuit is trading at a premium to the group.

Meanwhile, INTU's PEG ratio is currently 2.74. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. INTU's industry had an average PEG ratio of 2.48 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 56, putting it in the top 23% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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