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Intuit (INTU) Stock Sinks As Market Gains: What You Should Know

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Intuit (INTU - Free Report) closed the most recent trading day at $648.03, moving -0.27% from the previous trading session. This change lagged the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.34%.

Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 0.39% in the past month. In that same time, the Computer and Technology sector gained 2.85%, while the S&P 500 gained 4.32%.

Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. On that day, Intuit is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 176.47%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.74 billion, up 73.58% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $11.66 per share and revenue of $12.28 billion, which would represent changes of +19.71% and +27.45%, respectively, from the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 has moved 0.33% lower. Intuit is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, Intuit currently has a Forward P/E ratio of 55.74. This represents a premium compared to its industry's average Forward P/E of 37.37.

We can also see that INTU currently has a PEG ratio of 3.56. 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 was holding an average PEG ratio of 3.1 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 98, putting it in the top 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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