IBM (IBM) Outpaces Stock Market Gains: What You Should Know
IBM (IBM) closed the most recent trading day at $139.84, moving +0.16% from the previous trading session.
In the latest trading session, IBM (IBM) closed at $139.84, marking a +0.16% move from the previous day. This change outpaced the S&P 500's 0.15% gain on the day.
Prior to today's trading, shares of the technology and consulting company had lost 2.21% over the past month. This has lagged the Computer and Technology sector's gain of 1.54% and the S&P 500's gain of 1.68% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. On that day, IBM is projected to report earnings of $2.48 per share, which would represent a year-over-year decline of 3.88%. Our most recent consensus estimate is calling for quarterly revenue of $17.74 billion, up 1.03% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.83 per share and revenue of $74.93 billion, which would represent changes of +24.91% and +1.77%, respectively, from the prior year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 12.89. For comparison, its industry has an average Forward P/E of 24.81, which means IBM is trading at a discount to the group.
We can also see that IBM currently has a PEG ratio of 1.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IBM's industry had an average PEG ratio of 1.62 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 123, which puts it in the top 49% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.
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International Business Machines Corporation (IBM): Free Stock Analysis Report
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