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IBM (IBM) Outpaces Stock Market Gains: What You Should Know
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IBM (IBM - Free Report) closed at $139.82 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.34%.
Prior to today's trading, shares of the technology and consulting company had lost 6.9% over the past month. This has lagged the Computer and Technology sector's gain of 5.91% and the S&P 500's gain of 2.71% 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 $2.25 per share. This would mark year-over-year growth of 3.21%. Our most recent consensus estimate is calling for quarterly revenue of $18.24 billion, up 0.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.86 per share and revenue of $74.23 billion, which would represent changes of +25.26% and +0.82%, 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. 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 #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 28.36, which means IBM is trading at a discount to the group.
We can also see that IBM currently has a PEG ratio of 1.59. 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 1.74 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 248, putting it in the bottom 3% 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 at $139.82 in the latest trading session, marking a +0.75% move from the prior day. This move outpaced the S&P 500's daily gain of 0.34%.
Prior to today's trading, shares of the technology and consulting company had lost 6.9% over the past month. This has lagged the Computer and Technology sector's gain of 5.91% and the S&P 500's gain of 2.71% 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 $2.25 per share. This would mark year-over-year growth of 3.21%. Our most recent consensus estimate is calling for quarterly revenue of $18.24 billion, up 0.66% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.86 per share and revenue of $74.23 billion, which would represent changes of +25.26% and +0.82%, 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. 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 #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 12.77. For comparison, its industry has an average Forward P/E of 28.36, which means IBM is trading at a discount to the group.
We can also see that IBM currently has a PEG ratio of 1.59. 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 1.74 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 248, putting it in the bottom 3% 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.