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Intuit (INTU) Sees a More Significant Dip Than Broader Market: Some Facts to Know

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In the latest market close, Intuit (INTU - Free Report) reached $602.01, with a -1.24% movement compared to the previous day. This move lagged the S&P 500's daily loss of 0.92%. Elsewhere, the Dow lost 0.96%, while the tech-heavy Nasdaq lost 1.6%.

Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 4.48% in the past month. In that same time, the Computer and Technology sector gained 3.64%, while the S&P 500 gained 2.68%.

The upcoming earnings release of Intuit will be of great interest to investors. The company's upcoming EPS is projected at $2.36, signifying a 4.45% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $3.14 billion, reflecting a 5.38% rise from the equivalent quarter last year.

INTU's full-year Zacks Consensus Estimates are calling for earnings of $19.30 per share and revenue of $18.25 billion. These results would represent year-over-year changes of +13.93% and +12.04%, respectively.

Investors might also notice recent changes to analyst estimates for Intuit. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.2% fall in the Zacks Consensus EPS estimate. Intuit presently features a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 31.59 right now. This expresses a premium compared to the average Forward P/E of 29.68 of its industry.

Investors should also note that INTU has a PEG ratio of 2.17 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.46.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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