Intapp (INTA) is emerging as an attractive investment opportunity due to a notable improvement in the company’s earnings outlook. The stock has been a strong performer recently, and this positive momentum may continue as analysts continue to raise their earnings estimates for the company.
Analysts’ growing optimism about Intapp’s earnings prospects is driving these upward revisions. This positive sentiment should be reflected in the stock price as empirical research indicates a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The Zacks Rank system, a widely-respected tool for evaluating stocks, incorporates this insight. The system assigns a ranking from 1 (Strong Buy) to 5 (Strong Sell) based on a company’s earnings estimate revisions. Companies with a Zacks Rank of 1 or 2 have a historically strong track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
Intapp currently holds a Zacks Rank #2 (Buy), a testament to the strong agreement among analysts in revising earnings estimates upward. This has led to significant improvements in consensus estimates for both the current quarter and the full year.
Current Quarter Estimate Revisions
For the current quarter, Intapp is expected to earn $0.13 per share, representing a year-over-year increase of +116.67%. Over the past 30 days, two analysts have raised their estimates for Intapp, while none have lowered them. As a result, the Zacks Consensus Estimate has increased by 9.8%.
Current-Year Estimate Revisions
For the full year, the earnings estimate of $0.62 per share represents a change of +37.78% from the previous year. There has been a positive trend in estimate revisions for the current year as well. In the past month, six analysts have raised their estimates for Intapp, while only one has lowered theirs. This has led to a 32.09% increase in the consensus estimate.
Favorable Zacks Rank
These promising estimate revisions have earned Intapp a Zacks Rank #2 (Buy). This ranking, based on the proven efficacy of earnings estimate revisions, provides investors with valuable insights to make informed investment decisions. Our research consistently demonstrates that stocks with a Zacks Rank of 1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
The strong estimate revisions for Intapp have already attracted significant investment, pushing the stock price up by 14.6% over the past four weeks. However, further upside potential remains for the stock. Based on the positive outlook, consider adding Intapp to your portfolio.
