Here's Why Intuit (INTU) is a Great Momentum Stock to Buy

Intuit (INTU) is identified as a strong momentum stock with a Zacks Rank of #1 (Strong Buy) and a Momentum Style Score of B. INTU's stock has outperformed both its industry and the S&P 500 over the past week, month, quarter, and year, with a recent surge in earnings estimate revisions, increasing the full-year consensus from $19.31 to $20.06 in the past 60 days.

Analysis

Intuit (INTU) is presented as a compelling momentum investment, holding a Zacks Rank of #1 (Strong Buy) and a Momentum Style Score of B. The company's stock has demonstrated significant outperformance across multiple time horizons: shares increased 2.4% over the past week, outpacing the Zacks Computer - Software industry's 2.1% rise, and surged 18% in the last month, substantially ahead of the industry's 2.22% gain. Over the past quarter, INTU shares appreciated 28.85%, and over the last year, they climbed 34.44%, figures that dwarf the S&P 500's respective returns of 4.9% and 13.46%. This robust price action is supported by an average 20-day trading volume of 1,919,823 shares. Furthermore, the positive momentum is reinforced by upward revisions in earnings estimates; within the last 60 days, 11 analysts revised full-year earnings estimates upwards with no corresponding downward revisions, leading to an increase in the consensus estimate from $19.31 to $20.06. A similar trend of 10 upward revisions and no downward revisions was observed for the next fiscal year, highlighting sustained positive analyst sentiment which is a core component of the Zacks Rank methodology.

Key Decisions for Investors

• Given Intuit's #1 Zacks Rank, B Momentum Style Score, and significant outperformance relative to its industry and the S&P 500, investors employing momentum-based strategies should consider INTU as a strong candidate.
• The consistent and unanimous upward revisions in earnings estimates for both the current and next fiscal year provide a fundamental underpinning to the stock's momentum, suggesting that current holders may consider maintaining their positions and prospective investors might view this as a favorable entry point.
• Investors should monitor the persistence of these positive earnings estimate revisions and sustained price strength, as these are key drivers highlighted for INTU's current favorable outlook.