Intuit (INTU) ended the recent trading session at $310.44, demonstrating a +2.98% change from the preceding day's closing price. This change outpaced the S&P 500's 1.11% loss on the day. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 1.88%.
The maker of TurboTax, QuickBooks and other accounting software's stock has dropped by 8.45% in the past month, falling short of the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Intuit in its upcoming release. The company's earnings per share (EPS) are projected to be $2.47, reflecting a 26.05% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $4.3 billion, reflecting a 10.8% rise from the equivalent quarter last 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.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.01% decrease. Intuit currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Intuit is currently being traded at a Forward P/E ratio of 12.83. This denotes a discount relative to the industry average Forward P/E of 17.08.
Meanwhile, INTU's PEG ratio is currently 0.86. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Software industry had an average PEG ratio of 1.46 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 60, finds itself in the top 25% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Intuit Inc. (INTU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).