Intuit (INTU) closed the most recent trading day at $254.06, moving -0.94% from the previous trading session. This change lagged the S&P 500’s 0.37% gain on the day. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.56%.
Prior to today’s trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 2.09% over the past month. This has lagged the Computer and Technology sector’s gain of 5.93% and the S&P 500’s gain of 4.42% in that time.
INTU will be looking to display strength as it nears its next earnings release, which is expected to be November 21, 2019. The company is expected to report EPS of $0.27, down 6.9% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.12 billion, up 10.59% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.59 per share and revenue of $7.50 billion, which would represent changes of +12.44% and +10.62%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for INTU. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. INTU is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, INTU is currently trading at a Forward P/E ratio of 33.8. Its industry sports an average Forward P/E of 29.58, so we one might conclude that INTU is trading at a premium comparatively.
Meanwhile, INTU’s PEG ratio is currently 2.08. 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 2.25 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 66, which puts it in the top 26% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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