Intuit (INTU) closed at $416.45 in the latest trading session, marking a -1.46% move from the prior day. This change lagged the S&P 500's daily loss of 1.3%. Meanwhile, the Dow lost 0.77%, and the Nasdaq, a tech-heavy index, lost 5.51%.
Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 8.58% over the past month. This has lagged the Computer and Technology sector's gain of 14.67% and outpaced the S&P 500's gain of 6.41% in that time.
Intuit will be looking to display strength as it nears its next earnings release, which is expected to be February 23, 2023. On that day, Intuit is projected to report earnings of $1.43 per share, which would represent a year-over-year decline of 7.74%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.9 billion, up 8.44% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.64 per share and revenue of $14.1 billion, which would represent changes of +15.11% and +10.8%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Intuit. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Intuit is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Intuit is currently trading at a Forward P/E ratio of 30.98. For comparison, its industry has an average Forward P/E of 28.24, which means Intuit is trading at a premium to the group.
Investors should also note that INTU has a PEG ratio of 2.09 right now. 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 was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 94, putting it in the top 38% 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.
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