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 $122.58 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.91% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Heading into today, shares of the technology and consulting company had gained 4.31% over the past month, outpacing the Computer and Technology sector's gain of 1.29% and the S&P 500's gain of 1.55% in that time.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2022. In that report, analysts expect IBM to post earnings of $3.80 per share. This would mark year-over-year growth of 83.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.98 billion, down 6.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.40 per share and revenue of $73.3 billion. These totals would mark changes of +19.95% and -0.44%, respectively, from last year.
It is also important to note the 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 11.94. This represents a discount compared to its industry's average Forward P/E of 17.95.
Meanwhile, IBM's PEG ratio is currently 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. IBM's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much 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 $122.58 in the latest trading session, marking a -1.22% move from the prior day. This change lagged the S&P 500's 0.91% loss on the day. Meanwhile, the Dow lost 0.89%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Heading into today, shares of the technology and consulting company had gained 4.31% over the past month, outpacing the Computer and Technology sector's gain of 1.29% and the S&P 500's gain of 1.55% in that time.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be January 24, 2022. In that report, analysts expect IBM to post earnings of $3.80 per share. This would mark year-over-year growth of 83.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.98 billion, down 6.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.40 per share and revenue of $73.3 billion. These totals would mark changes of +19.95% and -0.44%, respectively, from last year.
It is also important to note the 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.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently sporting a Zacks Rank of #5 (Strong Sell).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 11.94. This represents a discount compared to its industry's average Forward P/E of 17.95.
Meanwhile, IBM's PEG ratio is currently 2.01. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. IBM's industry had an average PEG ratio of 1.69 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.