In the latest trading session, Intuit (INTU) closed at $456.17, marking a +1.69% move from the previous day. This change outpaced the S&P 500’s 1.42% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 16.38% in the past month. In that same time, the Computer and Technology sector gained 6.64%, while the S&P 500 gained 6.69%.
Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. This is expected to be August 23, 2022. On that day, Intuit is projected to report earnings of $0.99 per share, which would represent a year-over-year decline of 49.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.35 billion, down 8.1% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.72 per share and revenue of $12.67 billion, which would represent changes of +20.33% and +31.48%, respectively, from the prior year.
Any recent changes to analyst estimates for Intuit should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.07% higher within the past month. Intuit is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, Intuit is holding a Forward P/E ratio of 38.26. For comparison, its industry has an average Forward P/E of 27.44, which means Intuit is trading at a premium to the group.
Also, we should mention that INTU has a PEG ratio of 2.45. 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. Computer – Software stocks are, on average, holding a PEG ratio of 2.33 based on yesterday’s closing prices.
The Computer – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 138, putting it in the bottom 46% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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