IBM (IBM - Free Report) closed the most recent trading day at $122.30, moving -1.73% from the previous trading session. This change lagged the S&P 500's daily loss of 0.81%. Meanwhile, the Dow lost 0.56%, and the Nasdaq, a tech-heavy index, lost 1.27%.
Heading into today, shares of the technology and consulting company had lost 1.32% over the past month, outpacing the Computer and Technology sector's loss of 1.87% and lagging the S&P 500's gain of 5.06% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. In that report, analysts expect IBM to post earnings of $2.54 per share. This would mark a year-over-year decline of 5.22%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.76 billion, down 1.47% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $11.08 per share and revenue of $73.73 billion. These results would represent year-over-year changes of -13.51% and -4.43%, respectively.
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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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 remained stagnant. IBM is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 11.24. Its industry sports an average Forward P/E of 20.59, so we one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 3.43. 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 2.79 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 105, which puts it in the top 42% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.