In the latest trading session, Intuit (INTU) closed at $408.04, marking a +1.19% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.92%. Meanwhile, the Dow gained 0.1%, and the Nasdaq, a tech-heavy index, added 1.06%.
Heading into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 1.88% over the past month, lagging the Computer and Technology sector’s gain of 6.38% and the S&P 500’s gain of 9.6% in that time.
Wall Street will be looking for positivity from Intuit as it approaches its next earnings report date. This is expected to be November 29, 2022. On that day, Intuit is projected to report earnings of $1.17 per share, which would represent a year-over-year decline of 23.53%. Meanwhile, our latest consensus estimate is calling for revenue of $2.5 billion, up 24.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.70 per share and revenue of $14.51 billion, which would represent changes of +15.61% and +14.02%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
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 has moved 0.05% lower within the past month. Intuit is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Intuit is holding a Forward P/E ratio of 29.44. This represents a premium compared to its industry’s average Forward P/E of 26.47.
Also, we should mention that INTU has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Computer – Software industry currently had an average PEG ratio of 2.12 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 136, which puts it in the bottom 47% 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.
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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