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Intuit (INTU) Dips More Than Broader Markets: What You Should Know

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Intuit (INTU - Free Report) closed the most recent trading day at $522.91, moving -1.21% from the previous trading session. This change lagged the S&P 500's 0.47% loss on the day.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 8.69% over the past month, outpacing the Computer and Technology sector's gain of 3.99% and the S&P 500's gain of 3.38% in that time.

Investors will be hoping for strength from INTU as it approaches its next earnings release. On that day, INTU is projected to report earnings of $1.59 per share, which would represent a year-over-year decline of 12.15%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.32 billion, up 27.55% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $9.35 per share and revenue of $9.39 billion, which would represent changes of +18.96% and +22.28%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for INTU. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. INTU is currently a Zacks Rank #3 (Hold).

Digging into valuation, INTU currently has a Forward P/E ratio of 56.6. Its industry sports an average Forward P/E of 43.99, so we one might conclude that INTU is trading at a premium comparatively.

Meanwhile, INTU's PEG ratio is currently 3.84. 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 2.68 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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