Earnings Estimates Moving Higher for Intapp: Time to Buy?

Intapp INTA appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.

Analysts' growing optimism on the earnings prospects of this software developer is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.

For Intapp, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.

Current-Quarter Estimate Revisions

The company is expected to earn $0.13 per share for the current quarter, which represents a year-over-year change of +116.67%.

Over the last 30 days, two estimates have moved higher for Intapp compared to no negative revisions. As a result, the Zacks Consensus Estimate has increased 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 year-ago number.

There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, six estimates have moved up for Intapp versus one negative revision. This has pushed the consensus estimate 32.09% higher.

Favorable Zacks Rank

The promising estimate revisions have helped Intapp earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.

Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.

Bottom Line

While strong estimate revisions for Intapp have attracted decent investments and pushed the stock 14.6% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.

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