Intuit Inc. (INTU) Is a Trending Stock: Facts to Know Before Betting on It

Smith Micro Software, Inc. (SMSI) came out with a quarterly loss of $0.30 per share versus the Zacks Consensus Estimate of a loss of $0.31. This compares to earnings of $0.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 3.23%. A quarter ago, it was expected that this company would post a loss of $0.35 per share when it actually produced a loss of $0.38, delivering a surprise of -8.57%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Smith Micro Software, which belongs to the Zacks Computer - Software industry, posted revenues of $4.65 million for the quarter ended September 2024, missing the Zacks Consensus Estimate by 3.17%. This compares to year-ago revenues of $11 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Smith Micro Software shares have lost about 86.4% since the beginning of the year versus the S&P 500's gain of 25.5%.

What's Next for Smith Micro Software?

While Smith Micro Software has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Smith Micro Software: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.14 on $5.6 million in revenues for the coming quarter and -$1.28 on $21.3 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 19% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Intuit (INTU), is yet to report results for the quarter ended October 2024. The results are expected to be released on November 21.

This maker of TurboTax, QuickBooks and other accounting software is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of -4.5%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.

Intuit's revenues are expected to be $3.14 billion, up 5.4% from the year-ago quarter.

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Intuit (INTU) ended the recent trading session at $697.35, demonstrating a +1.92% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.1% for the day. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.06%.

The maker of TurboTax, QuickBooks and other accounting software's stock has climbed by 10.95% in the past month, exceeding the Computer and Technology sector's gain of 4.92% and the S&P 500's gain of 4.37%.

Investors will be eagerly watching for the performance of Intuit in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 21, 2024. The company is forecasted to report an EPS of $2.36, showcasing a 4.45% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $3.14 billion, indicating a 5.4% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $19.30 per share and a revenue of $18.25 billion, indicating changes of +13.93% and +12.04%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Intuit. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Intuit possesses a Zacks Rank of #4 (Sell).

Looking at valuation, Intuit is presently trading at a Forward P/E ratio of 35.46. This indicates a premium in contrast to its industry's Forward P/E of 31.24.

One should further note that INTU currently holds a PEG ratio of 2.43. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Software industry had an average PEG ratio of 2.61.

The Computer - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 46, finds itself in the top 19% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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Turtle Beach (HEAR) came out with quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.18 per share. This compares to loss of $0.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this audio technology company would post a loss of $0.27 per share when it actually produced a loss of $0.30, delivering a surprise of -11.11%.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Turtle Beach, which belongs to the Zacks Computer - Peripheral Equipment industry, posted revenues of $94.36 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 7.48%. This compares to year-ago revenues of $59.16 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Turtle Beach shares have added about 44.8% since the beginning of the year versus the S&P 500's gain of 24.3%.

What's Next for Turtle Beach?

While Turtle Beach has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Turtle Beach: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.26 on $161.75 million in revenues for the coming quarter and $1.15 on $380.15 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Peripheral Equipment is currently in the top 29% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the broader Zacks Computer and Technology sector, Intuit (INTU), is yet to report results for the quarter ended October 2024. The results are expected to be released on November 21.

This maker of TurboTax, QuickBooks and other accounting software is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of -4.5%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.

Intuit's revenues are expected to be $3.14 billion, up 5.4% from the year-ago quarter.

Zacks Investment Research

OptimizeRx Corp. OPRX shares rallied 19.8% in the last trading session to close at $6.12. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 27.4% loss over the past four weeks.

OptimizeRx is seeing strong growth with its Dynamic Audience Activation Platform — a solution offering predictive, secure marketing across a network that links patients, healthcare providers and the life sciences sector.

This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents a year-over-year change of -33.3%. Revenues are expected to be $24.94 million, up 52.7% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For OptimizeRx, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on OPRX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold).

OptimizeRx is part of the Zacks Computer - Software industry. Intuit INTU, another stock in the same industry, closed the last trading session 4.8% higher at $648.39. INTU has returned 0.9% in the past month.

Intuit's consensus EPS estimate for the upcoming report has changed +0.1% over the past month to $2.36. Compared to the company's year-ago EPS, this represents a change of -4.5%. Intuit currently boasts a Zacks Rank of #4 (Sell).

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PTC Inc. (PTC) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.43 per share. This compares to earnings of $1.20 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 7.69%. A quarter ago, it was expected that this product development software maker would post earnings of $0.98 per share when it actually produced earnings of $0.98, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

PTC Inc., which belongs to the Zacks Computer - Software industry, posted revenues of $626.55 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.98%. This compares to year-ago revenues of $546.62 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

PTC Inc. Shares have added about 8.6% since the beginning of the year versus the S&P 500's gain of 21.2%.

What's Next for PTC Inc.

While PTC Inc. Has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for PTC Inc. Unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.43 on $620.37 million in revenues for the coming quarter and $5.94 on $2.56 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Software is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Intuit (INTU), another stock in the same industry, has yet to report results for the quarter ended October 2024. The results are expected to be released on November 21.

This maker of TurboTax, QuickBooks and other accounting software is expected to post quarterly earnings of $2.36 per share in its upcoming report, which represents a year-over-year change of -4.5%. The consensus EPS estimate for the quarter has been revised 0.1% higher over the last 30 days to the current level.

Intuit's revenues are expected to be $3.14 billion, up 5.4% from the year-ago quarter.

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