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IBM (IBM) Outpaces Stock Market Gains: What You Should Know
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IBM (IBM - Free Report) closed the most recent trading day at $149.07, moving +0.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.02%.
Coming into today, shares of the technology and consulting company had gained 1.27% in the past month. In that same time, the Computer and Technology sector gained 2.08%, while the S&P 500 gained 0.04%.
IBM will be looking to display strength as it nears its next earnings release. In that report, analysts expect IBM to post earnings of $2.25 per share. This would mark year-over-year growth of 3.21%. Meanwhile, our latest consensus estimate is calling for revenue of $18.24 billion, up 0.66% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $10.86 per share and revenue of $74.23 billion. These results would represent year-over-year changes of +25.26% and +0.82%, respectively.
Investors should also note any 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.
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 remained stagnant. IBM is currently a Zacks Rank #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 13.62. For comparison, its industry has an average Forward P/E of 30.95, which means IBM is trading at a discount to the group.
Investors should also note that IBM has a PEG ratio of 1.69 right now. 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 industry currently had an average PEG ratio of 1.88 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 239, which puts it in the bottom 6% 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) Outpaces Stock Market Gains: What You Should Know
IBM (IBM - Free Report) closed the most recent trading day at $149.07, moving +0.71% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.02%.
Coming into today, shares of the technology and consulting company had gained 1.27% in the past month. In that same time, the Computer and Technology sector gained 2.08%, while the S&P 500 gained 0.04%.
IBM will be looking to display strength as it nears its next earnings release. In that report, analysts expect IBM to post earnings of $2.25 per share. This would mark year-over-year growth of 3.21%. Meanwhile, our latest consensus estimate is calling for revenue of $18.24 billion, up 0.66% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $10.86 per share and revenue of $74.23 billion. These results would represent year-over-year changes of +25.26% and +0.82%, respectively.
Investors should also note any 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.
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 remained stagnant. IBM is currently a Zacks Rank #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 13.62. For comparison, its industry has an average Forward P/E of 30.95, which means IBM is trading at a discount to the group.
Investors should also note that IBM has a PEG ratio of 1.69 right now. 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 industry currently had an average PEG ratio of 1.88 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 239, which puts it in the bottom 6% 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.