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Intuit (INTU) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·3-min read

Intuit (INTU) closed at $529.05 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's 0.38% loss on the day. Meanwhile, the Dow lost 0.5%, and the Nasdaq, a tech-heavy index, lost 0.05%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had lost 2.72% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.71% and the S&P 500's loss of 6.25% 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 February 24, 2022. On that day, Intuit is projected to report earnings of $1.88 per share, which would represent year-over-year growth of 176.47%. Meanwhile, our latest consensus estimate is calling for revenue of $2.74 billion, up 73.58% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $11.68 per share and revenue of $12.28 billion. These totals would mark changes of +19.92% and +27.45%, respectively, from last year.

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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.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Intuit is currently a Zacks Rank #2 (Buy).

Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 45.87 right now. This represents a premium compared to its industry's average Forward P/E of 32.01.

We can also see that INTU currently has a PEG ratio of 2.93. 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. INTU's industry had an average PEG ratio of 2.65 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 183, which puts it in the bottom 29% 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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Zacks Investment Research