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Intuit (INTU) closed the latest trading day at $627.86, indicating a +0.76% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.15%. Elsewhere, the Dow gained 0.35%, while the tech-heavy Nasdaq lost 0.09%.
Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 1.53% in the past month. In that same time, the Computer and Technology sector gained 1.15%, while the S&P 500 lost 0.21%.
The upcoming earnings release of Intuit will be of great interest to investors. In that report, analysts expect Intuit to post earnings of $10.89 per share. This would mark year-over-year growth of 10.22%. In the meantime, our current consensus estimate forecasts the revenue to be $7.54 billion, indicating a 11.98% 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 $19.26 per share and revenue of $18.28 billion. These totals would mark changes of +13.7% and +12.26%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Intuit. 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.
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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. 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 32.35. This valuation marks a premium compared to its industry's average Forward P/E of 26.74.
We can additionally observe that INTU currently boasts a PEG ratio of 2.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Software industry held an average PEG ratio of 2.26.
The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.