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Intuit (INTU - Free Report) keeps showing up in the cellar of the Zacks Rank in the past few months because overly-optimistic analyst EPS estimates keep getting nudged back down.
In late December, my colleague Jeremy Mullin wrote about the downward revision trend thus...
The guide forced analyst to take estimates down. While the current quarter looks fine, next quarter has seen estimates fall 11%. Over the last month, estimates went from $6.71 to $5.97, and for the current year (FY21 ends July) they have dropped from $8.68 to $8.48.
Since then, FY21 has slipped to $8.35. Clearly INTU makes most of its bank in the first half tax filing season, as that $6 EPS number for their FY21 Q3 (ends April) shows.
But maybe there are competitors afoot and after a big rally in the past year, shares may be over-their-skis at current valuation metrics.
Now I'll share Jeremy's closing remarks from late December since he is an excellent technical trader and had some solid views...
TechnicalTake
It has been a great run, but the stock looks overextended. If the 21-day MA were to break the 50-day at $350 would likely offer some support. However, if that level fails the next stop is all the way down at $304, where the 200-day MA resides. The stock hasn’t seen this level since May and would be a better entry than current prices.
InSummary
This is not a stock I would look to short, but buying at current levels seems to have a high-risk, low reward scenario. Investors should be patient and wait for a better entry to jump into Intuits long-term growth story.
(end of excerpt from Jeremy Mullin)
My take is that lots of Big Tech market leadership could be due to roll over soon. I've been raising cash for just such an occasion. And with INTU pressing on its $360 support level, lower levels could be in store as shares trade 10X sales.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Bear of the Day: Intuit (INTU)
Intuit (INTU - Free Report) keeps showing up in the cellar of the Zacks Rank in the past few months because overly-optimistic analyst EPS estimates keep getting nudged back down.
In late December, my colleague Jeremy Mullin wrote about the downward revision trend thus...
The guide forced analyst to take estimates down. While the current quarter looks fine, next quarter has seen estimates fall 11%. Over the last month, estimates went from $6.71 to $5.97, and for the current year (FY21 ends July) they have dropped from $8.68 to $8.48.
Since then, FY21 has slipped to $8.35. Clearly INTU makes most of its bank in the first half tax filing season, as that $6 EPS number for their FY21 Q3 (ends April) shows.
But maybe there are competitors afoot and after a big rally in the past year, shares may be over-their-skis at current valuation metrics.
Now I'll share Jeremy's closing remarks from late December since he is an excellent technical trader and had some solid views...
Technical Take
It has been a great run, but the stock looks overextended. If the 21-day MA were to break the 50-day at $350 would likely offer some support. However, if that level fails the next stop is all the way down at $304, where the 200-day MA resides. The stock hasn’t seen this level since May and would be a better entry than current prices.
In Summary
This is not a stock I would look to short, but buying at current levels seems to have a high-risk, low reward scenario. Investors should be patient and wait for a better entry to jump into Intuits long-term growth story.
(end of excerpt from Jeremy Mullin)
My take is that lots of Big Tech market leadership could be due to roll over soon. I've been raising cash for just such an occasion. And with INTU pressing on its $360 support level, lower levels could be in store as shares trade 10X sales.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.
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