We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBM (IBM) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
IBM (IBM - Free Report) closed at $140.28 in the latest trading session, marking a -0.45% move from the prior day. This move lagged the S&P 500's daily loss of 0.35%.
Heading into today, shares of the technology and consulting company had lost 6.07% over the past month, lagging the Computer and Technology sector's gain of 4.23% and the S&P 500's gain of 3.36% in that time.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2021. On that day, IBM is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 3.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.24 billion, up 0.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.86 per share and revenue of $74.23 billion. These totals would mark changes of +25.26% and +0.82%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently a Zacks Rank #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 12.97. Its industry sports an average Forward P/E of 28.73, so we one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 1.61. 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 1.77 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 217, which puts it in the bottom 15% 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IBM (IBM) Dips More Than Broader Markets: What You Should Know
IBM (IBM - Free Report) closed at $140.28 in the latest trading session, marking a -0.45% move from the prior day. This move lagged the S&P 500's daily loss of 0.35%.
Heading into today, shares of the technology and consulting company had lost 6.07% over the past month, lagging the Computer and Technology sector's gain of 4.23% and the S&P 500's gain of 3.36% in that time.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be July 19, 2021. On that day, IBM is projected to report earnings of $2.25 per share, which would represent year-over-year growth of 3.21%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.24 billion, up 0.66% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.86 per share and revenue of $74.23 billion. These totals would mark changes of +25.26% and +0.82%, respectively, from last year.
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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently a Zacks Rank #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 12.97. Its industry sports an average Forward P/E of 28.73, so we one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 1.61. 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 1.77 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 217, which puts it in the bottom 15% 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.