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Intuit (INTU) closed the latest trading day at $606.62, indicating a +1.45% change from the previous session's end. This change outpaced the S&P 500's 1.46% loss on the day. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 3.07%.
Shares of the maker of TurboTax, QuickBooks and other accounting software witnessed a loss of 6.36% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.43% and the S&P 500's gain of 1.08%.
The upcoming earnings release of Intuit will be of great interest to investors. On that day, Intuit is projected to report earnings of $2.59 per share, which would represent a year-over-year decline of 1.52%. In the meantime, our current consensus estimate forecasts the revenue to be $3.83 billion, indicating a 12.99% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $19.27 per share and revenue of $18.27 billion. These totals would mark changes of +13.75% and +12.18%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Intuit. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Intuit is currently sporting a Zacks Rank of #3 (Hold).
With respect to valuation, Intuit is currently being traded at a Forward P/E ratio of 31.03. This denotes a discount relative to the industry's average Forward P/E of 31.3.
It's also important to note that INTU currently trades at a PEG ratio of 2.15. 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 2.39 based on yesterday's closing prices.