Intuit (INTU) closed the most recent trading day at $282.43, moving -2.53% from the previous trading session. This change lagged the S&P 500's 0.38% gain on the day. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, added 0.9%.
Shares of the maker of TurboTax, QuickBooks and other accounting software have appreciated by 2.84% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.5%, and the S&P 500's gain of 1.27%.
Market participants will be closely following the financial results of Intuit in its upcoming release. The company is predicted to post an EPS of $3.59, indicating a 30.55% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.27 billion, up 11.55% from the year-ago period.
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 might also notice recent changes to analyst estimates for Intuit. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.08% upward. Intuit is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Intuit currently has a Forward P/E ratio of 12.14. This indicates a discount in contrast to its industry's Forward P/E of 16.31.
One should further note that INTU currently holds a PEG ratio of 0.81. 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 the market closed yesterday, the Computer - Software industry was having an average PEG ratio of 1.24.
The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 103, positioning it in the top 42% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during 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).