Intuit (INTU) Stock Declines While Market Improves: Some Information for Investors

Intuit (INTU) closed at $261.00 in the latest trading session, marking a -2.03% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.

The maker of TurboTax, QuickBooks and other accounting software's stock has dropped by 24.7% in the past month, falling short of the Computer and Technology sector's loss of 4.61% and the S&P 500's loss of 1.82%.

The upcoming earnings release of Intuit will be of great interest to investors. It is anticipated that the company will report an EPS of $3.59, marking a 30.55% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $4.27 billion, up 11.55% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $23.86 per share and revenue of $21.37 billion, which would represent changes of +18.41% and +13.48%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for Intuit. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, there's been a 0.08% rise in the Zacks Consensus EPS estimate. Intuit currently has a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 11.16 right now. This signifies a discount in comparison to the average Forward P/E of 14.73 for its industry.

Investors should also note that INTU has a PEG ratio of 0.74 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 average PEG ratio for the Computer - Software industry stood at 1.28 at the close of the market yesterday.

Story Continues

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 106, finds itself in the top 44% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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