In the latest market close, Intuit (INTU) reached $624.79, with a +1.62% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.74%. Elsewhere, the Dow saw an upswing of 0.05%, while the tech-heavy Nasdaq appreciated by 1.26%.
The maker of TurboTax, QuickBooks and other accounting software's shares have seen a decrease of 0.08% over the last month, surpassing the Computer and Technology sector's loss of 6.23% and the S&P 500's loss of 4.77%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. The company is forecasted to report an EPS of $10.89, showcasing a 10.22% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $7.54 billion, up 11.98% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $19.26 per share and revenue of $18.28 billion, indicating changes of +13.7% and +12.26%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Intuit. 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.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.2% lower. Intuit is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Intuit currently has a Forward P/E ratio of 31.92. For comparison, its industry has an average Forward P/E of 25.66, which means Intuit is trading at a premium to the group.
It's also important to note that INTU currently trades at a PEG ratio of 2.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 2.23.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 30% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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