In the latest trading session, Intuit (INTU - Free Report) closed at $258.49, marking a -0.05% move from the previous day. This move was narrower than the S&P 500's daily loss of 0.08%. At the same time, the Dow lost 0.07%, and the tech-heavy Nasdaq lost 0.59%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 2.76% over the past month. This has lagged the Computer and Technology sector's gain of 4.71% and the S&P 500's gain of 2.7% in that time.
Investors will be hoping for strength from INTU as it approaches its next earnings release. On that day, INTU is projected to report earnings of $0.27 per share, which would represent a year-over-year decline of 6.9%. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 10.59% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.59 per share and revenue of $7.50 billion. These totals would mark changes of +12.44% and +10.62%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for INTU. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 remained stagnant within the past month. INTU is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that INTU has a Forward P/E ratio of 34.08 right now. Its industry sports an average Forward P/E of 29.18, so we one might conclude that INTU is trading at a premium comparatively.
Also, we should mention that INTU has a PEG ratio of 2.09. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Software was holding an average PEG ratio of 2.18 at yesterday's closing price.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.