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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 $527.51, moving -0.46% from the previous trading session. This move lagged the S&P 500's daily loss of 0.18%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 6.5% over the past month. This has outpaced the Computer and Technology sector's gain of 3.16% and the S&P 500's gain of 2.44% in that time.

INTU will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2021. 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%. Our most recent consensus estimate is calling for quarterly revenue of $2.32 billion, up 27.55% from the year-ago period.

Any recent changes to analyst estimates for INTU should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. INTU is currently a Zacks Rank #3 (Hold).

Digging into valuation, INTU currently has a Forward P/E ratio of 56.67. Its industry sports an average Forward P/E of 33.12, so we one might conclude that INTU is trading at a premium comparatively.

It is also worth noting that INTU currently has a PEG ratio of 3.85. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. INTU's industry had an average PEG ratio of 2.72 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 97, which puts it in the top 39% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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