In the latest trading session, Intuit (INTU) closed at $279.84, marking a -1.04% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.73%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 1.19%.
The maker of TurboTax, QuickBooks and other accounting software's stock has dropped by 17.87% in the past month, falling short of the Computer and Technology sector's gain of 6.36% and the S&P 500's gain of 0.55%.
The upcoming earnings release of Intuit will be of great interest to investors. The company's upcoming EPS is projected at $2.46, signifying a 26.35% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.3 billion, up 10.8% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $23.49 per share and revenue of $23.39 billion, which would represent changes of -3.21% and +9.06%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.04% lower within the past month. Intuit is currently a Zacks Rank #3 (Hold).
Looking at valuation, Intuit is presently trading at a Forward P/E ratio of 12.04. This valuation marks a discount compared to its industry average Forward P/E of 15.71.
We can additionally observe that INTU currently boasts a PEG ratio of 0.81. 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. The Computer - Software industry currently had an average PEG ratio of 1.45 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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).