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Intuit (INTU) Beats Stock Market Upswing: What Investors Need to Know

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Intuit (INTU - Free Report) closed the latest trading day at $623.70, indicating a +1.9% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.16%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq appreciated by 0.78%.

The maker of TurboTax, QuickBooks and other accounting software's shares have seen a decrease of 1.43% over the last month, not keeping up with the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67%.

The upcoming earnings release of Intuit will be of great interest to investors. The company is predicted to post an EPS of $2.36, indicating a 4.45% decline compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.14 billion, up 5.38% from the year-ago period.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.30 per share and revenue of $18.25 billion, indicating changes of +13.93% and +12.04%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

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 0.2% lower. As of now, Intuit holds a Zacks Rank of #4 (Sell).

From a valuation perspective, Intuit is currently exchanging hands at a Forward P/E ratio of 31.72. This expresses a premium compared to the average Forward P/E of 29.95 of its industry.

Meanwhile, INTU's PEG ratio is currently 2.18. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Software industry currently 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 89, putting it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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