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Intuit (INTU) Outperforms Broader Market: What You Need to Know
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Intuit (INTU - Free Report) ended the recent trading session at $335.29, demonstrating a +2.97% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 7.07% outpaced the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. On that day, Intuit is projected to report earnings of $2.47 per share, which would represent a year-over-year decline of 26.05%. In the meantime, our current consensus estimate forecasts the revenue to be $4.3 billion, indicating a 10.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $23.5 per share and a revenue of $23.39 billion, demonstrating changes of -3.17% and +9.07%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Intuit. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Intuit is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Intuit is currently being traded at a Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 16.54, so one might conclude that Intuit is trading at a discount comparatively.
One should further note that INTU currently holds a PEG ratio of 0.93. 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 had an average PEG ratio of 1.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow INTU in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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Intuit (INTU) Outperforms Broader Market: What You Need to Know
Intuit (INTU - Free Report) ended the recent trading session at $335.29, demonstrating a +2.97% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 1.02%, while the tech-heavy Nasdaq lost 0.02%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 7.07% outpaced the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. On that day, Intuit is projected to report earnings of $2.47 per share, which would represent a year-over-year decline of 26.05%. In the meantime, our current consensus estimate forecasts the revenue to be $4.3 billion, indicating a 10.81% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $23.5 per share and a revenue of $23.39 billion, demonstrating changes of -3.17% and +9.07%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Intuit. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Intuit is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Intuit is currently being traded at a Forward P/E ratio of 13.86. Its industry sports an average Forward P/E of 16.54, so one might conclude that Intuit is trading at a discount comparatively.
One should further note that INTU currently holds a PEG ratio of 0.93. 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 had an average PEG ratio of 1.37 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
To follow INTU in the coming trading sessions, be sure to utilize Zacks.com.