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Intuit (INTU) Soared to a 52-Week-High, Time to Cash Out?
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Have you been paying attention to shares of Intuit (INTU - Free Report) ? Shares have been on the move, with the stock up 8.8% over the past month. INTU hit a new 52-week-high of $213.76 in the previous session. Intuit has gained 35.3% since the start of the year compared to the 9.3% move for the Computer and Technology sector and the 17.4% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on May 22, 2018, Intuit reported EPS of $4.82 vs.the Zacks Consensus of $4.67 while it beat the consensus revenue estimate by 2.91%.
For the current fiscal year, Intuit is expected to post earnings of $5.53 per share on $5.93 billion in revenues. This represents a 25.4% change in EPS on a 14.51% change in revenues. For the next fiscal year, the company is expected to earn $6.52 per share on $6.51 billion in revenues. This represents a year-over-year change of 17.96% and 9.88%, respectively.
Valuation Metrics
Intuit may be at a 52-week-high right now, but what might the future hold for INTU? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Intuit has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 38.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 44.9X versus its peer group's average of 25.7X. Additionally, the stock has a PEG ratio of 2.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Intuit currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Intuit passes the test. Thus, it seems as though INTU shares could have potential in the weeks and months to come.
How Does Intuit Stack Up to the Competition?
Shares of Intuit have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Verint Systems (VRNT - Free Report) , SAP SE (SAP - Free Report) , and Adobe Systems (ADBE - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Computer-Software industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for INTU, even beyond its own solid fundamental situation.
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Intuit (INTU) Soared to a 52-Week-High, Time to Cash Out?
Have you been paying attention to shares of Intuit (INTU - Free Report) ? Shares have been on the move, with the stock up 8.8% over the past month. INTU hit a new 52-week-high of $213.76 in the previous session. Intuit has gained 35.3% since the start of the year compared to the 9.3% move for the Computer and Technology sector and the 17.4% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus EPS estimate in each of the last four quarters. In its last earnings report on May 22, 2018, Intuit reported EPS of $4.82 vs.the Zacks Consensus of $4.67 while it beat the consensus revenue estimate by 2.91%.
For the current fiscal year, Intuit is expected to post earnings of $5.53 per share on $5.93 billion in revenues. This represents a 25.4% change in EPS on a 14.51% change in revenues. For the next fiscal year, the company is expected to earn $6.52 per share on $6.51 billion in revenues. This represents a year-over-year change of 17.96% and 9.88%, respectively.
Valuation Metrics
Intuit may be at a 52-week-high right now, but what might the future hold for INTU? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Intuit has a Value Score of D. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM score of B.
In terms of its value breakdown, the stock currently trades at 38.6X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 44.9X versus its peer group's average of 25.7X. Additionally, the stock has a PEG ratio of 2.38. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Intuit currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Intuit passes the test. Thus, it seems as though INTU shares could have potential in the weeks and months to come.
How Does Intuit Stack Up to the Competition?
Shares of Intuit have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Verint Systems (VRNT - Free Report) , SAP SE (SAP - Free Report) , and Adobe Systems (ADBE - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Computer-Software industry is in the top 29% of all the industries we have in our universe, so it looks like there are some nice tailwinds for INTU, even beyond its own solid fundamental situation.