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Intuit (INTU) Gains But Lags Market: What You Should Know

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Intuit (INTU - Free Report) closed the most recent trading day at $615.25, moving +0.04% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.09%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 15.79% over the past month. This has outpaced the Computer and Technology sector's gain of 9.47% and the S&P 500's gain of 8.19% in that time.

INTU will be looking to display strength as it nears its next earnings release, which is expected to be November 18, 2021. The company is expected to report EPS of $0.97, up 3.19% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.81 billion, up 36.95% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.25 per share and revenue of $11.17 billion, which would represent changes of +15.5% and +15.96%, respectively, from the prior year.

Any recent changes to analyst estimates for INTU should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% lower. INTU is currently a Zacks Rank #3 (Hold).

In terms of valuation, INTU is currently trading at a Forward P/E ratio of 54.67. For comparison, its industry has an average Forward P/E of 39.6, which means INTU is trading at a premium to the group.

Also, we should mention that INTU has a PEG ratio of 3.69. 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. INTU's industry had an average PEG ratio of 2.92 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 102, putting it in the top 41% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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