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Intuit (INTU) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Intuit (INTU - Free Report) closed at $496.70, marking a -0.82% move from the previous day. This change lagged the S&P 500's 0.7% loss on the day. Elsewhere, the Dow lost 0.54%, while the tech-heavy Nasdaq lost 1.17%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 8% over the past month. This has outpaced the Computer and Technology sector's gain of 1.4% and the S&P 500's gain of 2.35% in that time.

Intuit will be looking to display strength as it nears its next earnings release, which is expected to be August 24, 2023. On that day, Intuit is projected to report earnings of $1.38 per share, which would represent year-over-year growth of 25.45%. Meanwhile, our latest consensus estimate is calling for revenue of $2.64 billion, up 9.41% from the prior-year quarter.

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. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Intuit currently has a Zacks Rank of #3 (Hold).

Digging into valuation, Intuit currently has a Forward P/E ratio of 32.26. This represents a premium compared to its industry's average Forward P/E of 28.48.

Investors should also note that INTU has a PEG ratio of 2.11 right now. 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 2.4 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 80, which puts it in the top 32% 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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