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Intuit (INTU) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·3-min read

Intuit (INTU) closed the most recent trading day at $477.76, moving -0.11% from the previous trading session. This change lagged the S&P 500's 0.23% gain on the day. Meanwhile, the Dow gained 0.06%, and the Nasdaq, a tech-heavy index, added 0.09%.

Coming into today, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 13.76% in the past month. In that same time, the Computer and Technology sector gained 11.35%, while the S&P 500 gained 10.76%.

Intuit will be looking to display strength as it nears its next earnings release, which is expected to be August 23, 2022. In that report, analysts expect Intuit to post earnings of $0.99 per share. This would mark a year-over-year decline of 49.75%. Meanwhile, our latest consensus estimate is calling for revenue of $2.35 billion, down 8.1% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Intuit. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Intuit is currently a Zacks Rank #2 (Buy).

Digging into valuation, Intuit currently has a Forward P/E ratio of 35.07. For comparison, its industry has an average Forward P/E of 30.47, which means Intuit is trading at a premium to the group.

Meanwhile, INTU's PEG ratio is currently 2.25. 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. The Computer - Software industry currently had an average PEG ratio of 2.26 as of yesterday's close.

The Computer - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 136, putting it in the bottom 47% 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.

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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Zacks Investment Research