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IBM (IBM) Gains As Market Dips: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $117.80, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.65%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.07%.
Coming into today, shares of the technology and consulting company had lost 9.88% in the past month. In that same time, the Computer and Technology sector lost 13.29%, while the S&P 500 lost 11.07%.
Investors will be hoping for strength from IBM as it approaches its next earnings release, which is expected to be October 19, 2022. In that report, analysts expect IBM to post earnings of $1.88 per share. This would mark a year-over-year decline of 25.4%. Meanwhile, our latest consensus estimate is calling for revenue of $13.75 billion, down 21.96% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.38 per share and revenue of $59.9 billion, which would represent changes of +18.28% and -15.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.94% lower. IBM is currently a Zacks Rank #4 (Sell).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 12.55. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.55.
Investors should also note that IBM has a PEG ratio of 1.8 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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IBM (IBM) Gains As Market Dips: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $117.80, marking a +0.04% move from the previous day. This move outpaced the S&P 500's daily loss of 0.65%. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.07%.
Coming into today, shares of the technology and consulting company had lost 9.88% in the past month. In that same time, the Computer and Technology sector lost 13.29%, while the S&P 500 lost 11.07%.
Investors will be hoping for strength from IBM as it approaches its next earnings release, which is expected to be October 19, 2022. In that report, analysts expect IBM to post earnings of $1.88 per share. This would mark a year-over-year decline of 25.4%. Meanwhile, our latest consensus estimate is calling for revenue of $13.75 billion, down 21.96% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.38 per share and revenue of $59.9 billion, which would represent changes of +18.28% and -15.38%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 0.94% lower. IBM is currently a Zacks Rank #4 (Sell).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 12.55. This represents a no noticeable deviation compared to its industry's average Forward P/E of 12.55.
Investors should also note that IBM has a PEG ratio of 1.8 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.67 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 91, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.