Intuit (INTU) closed at $303.91 in the latest trading session, marking a +2.56% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.02%. Meanwhile, the Dow experienced a rise of 0.51%, and the technology-dominated Nasdaq saw a decrease of 0.18%.
Shares of the maker of TurboTax, QuickBooks and other accounting software witnessed a gain of 10.69% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.21%, and the S&P 500's gain of 0.77%.
The investment community will be closely monitoring the performance of Intuit in its forthcoming earnings report. The company's upcoming EPS is projected at $3.59, signifying a 30.55% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.27 billion, indicating a 11.52% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.86 per share and a revenue of $21.37 billion, signifying shifts of +18.41% and +13.48%, respectively, from the last year.
Investors should also take note of any recent adjustments 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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Within the past 30 days, our consensus EPS projection has moved 0.03% lower. Intuit is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Intuit currently has a Forward P/E ratio of 12.42. Its industry sports an average Forward P/E of 14.79, so one might conclude that Intuit is trading at a discount comparatively.
It is also worth noting that INTU currently has a PEG ratio of 0.83. 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. The Computer - Software was holding an average PEG ratio of 1.23 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 38% of all industries, numbering over 250.
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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Intuit Inc. (INTU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).