Bear Of The Day: Intuit (INTU)
Beating the number and seeing some estimates move higher is not enough to keep this stock from be a Zacks Rank #5 (Strong Sell)
Intuit (INTU) is a Zacks Rank #5 (Strong Sell) despite recently beating the Zacks Consensus Estimate. Stocks that meet or beat the number don’t often fall to a Zacks Rank #5 (Strong Sell) so let’s take a look at why that is the case in this Bear of the Day article.
Headquartered in Mountain View, CA, Intuit Inc. is a business and financial software company that develops and sells financial, accounting and tax preparation software and related services for small businesses, consumers and accounting professionals globally.
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of INTU, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For MFCE I see estimates fluctuating.
This quarter has dipped from $1.10 to $0.97.
Next quarter has moved from $1.35 to $1.42 over the last 30 days.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
The 2021 consensus number has increased from $10.84 to $11.05.
The 2022 number has moved from $12.86 to $12.85 over the last 30 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Intuit Inc. Price, Consensus and EPS Surprise
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.See 3 crypto-related stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Intuit Inc. (INTU): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research