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IBM (IBM) Stock Sinks As Market Gains: What You Should Know
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IBM (IBM - Free Report) closed the most recent trading day at $133.67, moving -0.1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.14%.
IBM will be looking to display strength as it nears its next earnings release. In that report, analysts expect IBM to post earnings of $1.24 per share. This would mark a year-over-year decline of 46.32%. Meanwhile, our latest consensus estimate is calling for revenue of $15.5 billion, down 0.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.31 per share and revenue of $61.89 billion. These totals would mark changes of +1.97% and +2.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. IBM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 14.38. Its industry sports an average Forward P/E of 14.38, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
We can also see that IBM currently has a PEG ratio of 3.53. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.75 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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IBM (IBM) Stock Sinks As Market Gains: What You Should Know
IBM (IBM - Free Report) closed the most recent trading day at $133.67, moving -0.1% from the previous trading session. This move lagged the S&P 500's daily gain of 0.12%. Meanwhile, the Dow gained 0.03%, and the Nasdaq, a tech-heavy index, added 5.14%.
IBM will be looking to display strength as it nears its next earnings release. In that report, analysts expect IBM to post earnings of $1.24 per share. This would mark a year-over-year decline of 46.32%. Meanwhile, our latest consensus estimate is calling for revenue of $15.5 billion, down 0.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.31 per share and revenue of $61.89 billion. These totals would mark changes of +1.97% and +2.25%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. IBM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 14.38. Its industry sports an average Forward P/E of 14.38, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
We can also see that IBM currently has a PEG ratio of 3.53. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.75 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 86, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.