Intuit (INTU) ended the recent trading session at $613.78, demonstrating a -0.03% swing from the preceding day's closing price. This change lagged the S&P 500's 0.38% gain on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq gained 0.87%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 2.15% in the past month. In that same time, the Computer and Technology sector lost 8.94%, while the S&P 500 lost 5.59%.
The upcoming earnings release of Intuit will be of great interest to investors. The company is expected to report EPS of $11.01, up 11.44% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $7.56 billion, reflecting a 12.19% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $19.31 per share and a revenue of $18.3 billion, signifying shifts of +13.99% and +12.4%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Intuit. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been a 0.05% fall in the Zacks Consensus EPS estimate. Right now, Intuit possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Intuit is at present trading with a Forward P/E ratio of 31.79. This expresses a premium compared to the average Forward P/E of 24.11 of its industry.
We can additionally observe that INTU currently boasts a PEG ratio of 2.19. 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. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.04.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 70, positioning it in the top 29% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).
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