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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 $120.71, moving -0.12% from the previous trading session. This change lagged the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Heading into today, shares of the technology and consulting company had gained 0.32% over the past month, lagging the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.1% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. In that report, analysts expect IBM to post earnings of $1.66 per share. This would mark a year-over-year decline of 9.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.44 billion, down 0.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.17 per share and revenue of $74.38 billion, which would represent changes of +28.84% and +1.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, IBM currently has a Forward P/E ratio of 10.65. This represents a discount compared to its industry's average Forward P/E of 43.61.
Also, we should mention that IBM has a PEG ratio of 1.36. 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. The Computer - Integrated Systems was holding an average PEG ratio of 1.36 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.
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 $120.71, moving -0.12% from the previous trading session. This change lagged the S&P 500's 0.13% gain on the day. Meanwhile, the Dow gained 0.05%, and the Nasdaq, a tech-heavy index, lost 0.5%.
Heading into today, shares of the technology and consulting company had gained 0.32% over the past month, lagging the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.1% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. In that report, analysts expect IBM to post earnings of $1.66 per share. This would mark a year-over-year decline of 9.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.44 billion, down 0.73% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $11.17 per share and revenue of $74.38 billion, which would represent changes of +28.84% and +1.03%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, IBM currently has a Forward P/E ratio of 10.65. This represents a discount compared to its industry's average Forward P/E of 43.61.
Also, we should mention that IBM has a PEG ratio of 1.36. 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. The Computer - Integrated Systems was holding an average PEG ratio of 1.36 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 21% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.