In the latest close session, Intuit (INTU) was up +2.23% at $303.88. The stock's performance was ahead of the S&P 500's daily loss of 0.47%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, lost 1.25%.
The maker of TurboTax, QuickBooks and other accounting software's stock has dropped by 5.32% in the past month, falling short of the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
Investors will be eagerly watching for the performance of Intuit in its upcoming earnings disclosure. The company is predicted to post an EPS of $2.46, indicating a 26.35% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $4.3 billion, indicating a 10.8% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $23.49 per share and a revenue of $23.39 billion, signifying shifts of -3.21% and +9.06%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 2.04% fall in the Zacks Consensus EPS estimate. As of now, Intuit holds a Zacks Rank of #3 (Hold).
Investors should also note Intuit's current valuation metrics, including its Forward P/E ratio of 12.65. This denotes a discount relative to the industry average Forward P/E of 16.77.
Also, we should mention that INTU has a PEG ratio of 0.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. INTU's industry had an average PEG ratio of 1.49 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 64, finds itself in the top 27% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Intuit Inc. (INTU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).