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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 $442.32, moving -0.91% from the previous trading session. This change lagged the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.2%, and the Nasdaq, a tech-heavy index, lost 4.87%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 3.92% over the past month, outpacing the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 3.31% in that time.

Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. In that report, analysts expect Intuit to post earnings of $8.45 per share. This would mark year-over-year growth of 10.46%. Meanwhile, our latest consensus estimate is calling for revenue of $6.09 billion, up 8.15% from the prior-year quarter.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $13.72 per share and revenue of $14.15 billion. These results would represent year-over-year changes of +15.78% and +11.15%, respectively.

It is also important to note the recent changes to analyst estimates for Intuit. 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.

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 0.12% higher. Intuit currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Intuit currently has a Forward P/E ratio of 32.54. This represents a premium compared to its industry's average Forward P/E of 27.47.

We can also see that INTU currently has a PEG ratio of 2.19. 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. The Computer - Software was holding an average PEG ratio of 2.19 at yesterday's closing price.

The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 109, which puts it in the top 44% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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