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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 $261.33, marking a +1.29% move from the previous day. This change outpaced the S&P 500's 0.58% gain on the day. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq gained 0.48%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 3.99% over the past month. This has outpaced the Computer and Technology sector's gain of 3.51% and the S&P 500's gain of 3.62% in that time.

Wall Street will be looking for positivity from INTU as it approaches its next earnings report date. In that report, analysts expect INTU to post earnings of -$0.14 per share. This would mark a year-over-year decline of 143.75%. Our most recent consensus estimate is calling for quarterly revenue of $961.37 million, down 2.69% from the year-ago period.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $6.70 per share and revenue of $6.75 billion. These results would represent year-over-year changes of +19.43% and +13.2%, respectively.

Investors should also note any recent changes to analyst estimates for INTU. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. INTU is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, INTU currently has a Forward P/E ratio of 38.53. Its industry sports an average Forward P/E of 29.58, so we one might conclude that INTU is trading at a premium comparatively.

Investors should also note that INTU has a PEG ratio of 2.4 right now. 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 2.14 based on yesterday's closing prices.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 40% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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