Why Intuit (INTU) Dipped More Than Broader Market Today

Intuit (INTU) closed the most recent trading day at $335.60, moving -2.91% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.52% for the day. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq lost 0.32%.

Prior to today's trading, shares of the maker of TurboTax, QuickBooks and other accounting software had gained 18.75% outpaced the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 3.3%.

Market participants will be closely following the financial results of Intuit in its upcoming release. The company plans to announce its earnings on August 25, 2026. 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. Meanwhile, our latest consensus estimate is calling for revenue of $4.27 billion, up 11.52% from the prior-year quarter.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $23.85 per share and revenue of $21.37 billion. These totals would mark changes of +18.36% and +13.48%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Intuit. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. Intuit is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Intuit has a Forward P/E ratio of 12.64 right now. This expresses a discount compared to the average Forward P/E of 18.32 of its industry.

We can additionally observe that INTU currently boasts a PEG ratio of 0.84. 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 had an average PEG ratio of 1.59 as trading concluded yesterday.

The Computer - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 87, positioning it in the top 36% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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This article originally published on Zacks Investment Research (zacks.com).

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