All You Need to Know About Intuit (INTU) Rating Upgrade to Buy

Core Viewpoint - Intuit (INTU) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Intuit suggest an improvement in the company's underlying business, likely leading to increased stock prices [5]. Zacks Rank System - The Zacks Rank stock-rating system classifies stocks into five groups based on four factors related to earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - The Zacks rating system maintains a balanced proportion of 'buy' and 'sell' ratings across its universe of over 4000 stocks, ensuring that only the top 5% receive a 'Strong Buy' rating [9]. Specifics on Intuit's Earnings Estimates - For the fiscal year ending July 2025, Intuit is expected to earn $19.33 per share, reflecting a 14.1% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for Intuit has increased by 0.9%, indicating positive sentiment among analysts [8]. Conclusion - The upgrade of Intuit to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks in terms of estimate revisions, suggesting potential for higher stock movement in the near term [10].