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Here's Why Intuit (INTU) Fell More Than Broader Market
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Intuit (INTU - Free Report) closed the latest trading day at $637.10, indicating a -1.15% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of maker of TurboTax, QuickBooks and other accounting software has risen by 3.31% in the past month, leading the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be closely monitoring the performance of Intuit in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.86, reflecting a 12.73% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 13.73% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.83 per share and a revenue of $16.19 billion, representing changes of +16.88% and +12.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Intuit boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Intuit is presently trading at a Forward P/E ratio of 38.3. This expresses a premium compared to the average Forward P/E of 30.24 of its industry.
We can also see that INTU currently has a PEG ratio of 2.57. 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. The Computer - Software industry currently had an average PEG ratio of 2.47 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 38% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Intuit (INTU) Fell More Than Broader Market
Intuit (INTU - Free Report) closed the latest trading day at $637.10, indicating a -1.15% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The the stock of maker of TurboTax, QuickBooks and other accounting software has risen by 3.31% in the past month, leading the Computer and Technology sector's gain of 0.47% and the S&P 500's gain of 1.96%.
The investment community will be closely monitoring the performance of Intuit in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $1.86, reflecting a 12.73% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.08 billion, up 13.73% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $16.83 per share and a revenue of $16.19 billion, representing changes of +16.88% and +12.65%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Intuit boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Intuit is presently trading at a Forward P/E ratio of 38.3. This expresses a premium compared to the average Forward P/E of 30.24 of its industry.
We can also see that INTU currently has a PEG ratio of 2.57. 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. The Computer - Software industry currently had an average PEG ratio of 2.47 as of yesterday's close.
The Computer - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 158, placing it within the bottom 38% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.