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

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Intuit (INTU - Free Report) closed the most recent trading day at $426.89, moving +0.22% from the previous trading session. This change outpaced the S&P 500's 0.05% gain on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq added 6.02%.

Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 4.66% over the past month, lagging the Computer and Technology sector's gain of 1.52% and the S&P 500's gain of 1.18% in that time.

Investors will be hoping for strength from Intuit as it approaches its next earnings release, which is expected to be May 23, 2023. The company is expected to report EPS of $8.45, up 10.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $6.09 billion, up 8.15% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $13.72 per share and revenue of $14.15 billion, which would represent changes of +15.78% and +11.15%, respectively, from the prior year.

Any recent changes to analyst estimates for Intuit should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Intuit currently has a Zacks Rank of #4 (Sell).

Investors should also note Intuit's current valuation metrics, including its Forward P/E ratio of 31.05. For comparison, its industry has an average Forward P/E of 25.85, which means Intuit is trading at a premium to the group.

Meanwhile, INTU's PEG ratio is currently 2.09. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. INTU's industry had an average PEG ratio of 2.09 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 161, which puts it in the bottom 37% 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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