In the latest trading session, Intuit (INTU) closed at $442.51, marking a -0.32% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.14%, while the tech-heavy Nasdaq added 2.14%.
Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 0.42% over the past month, lagging the Computer and Technology sector's gain of 4.01% and the S&P 500's gain of 5.1% in that time.
Intuit will be looking to display strength as it nears its next earnings release, which is expected to be May 23, 2023. In that report, analysts expect Intuit to post earnings of $8.45 per share. This would mark year-over-year growth of 10.46%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $6.09 billion, up 8.15% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.72 per share and revenue of $14.15 billion, which would represent changes of +15.78% and +11.15%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 0.12% higher. Intuit currently has a Zacks Rank of #4 (Sell).
Investors should also note Intuit's current valuation metrics, including its Forward P/E ratio of 32.36. For comparison, its industry has an average Forward P/E of 27.47, which means Intuit is trading at a premium to the group.
Investors should also note that INTU has a PEG ratio of 2.18 right now. 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 2.15 based on yesterday's closing prices.
The Computer - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 114, which puts it in the top 46% 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.
To follow INTU in the coming trading sessions, be sure to utilize Zacks.com.
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