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IBM (IBM) Stock Moves -0.27%: What You Should Know
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IBM (IBM - Free Report) closed the most recent trading day at $127.06, moving -0.27% from the previous trading session. This change was narrower than the S&P 500's 1.14% loss on the day. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.36%.
Coming into today, shares of the technology and consulting company had gained 9.78% in the past month. In that same time, the Computer and Technology sector lost 4.36%, while the S&P 500 lost 1.37%.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. This is expected to be January 24, 2022. In that report, analysts expect IBM to post earnings of $3.79 per share. This would mark year-over-year growth of 83.09%. Meanwhile, our latest consensus estimate is calling for revenue of $18.28 billion, down 10.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.39 per share and revenue of $72.75 billion, which would represent changes of +19.84% and -1.18%, respectively, from the prior year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. IBM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 12.26 right now. For comparison, its industry has an average Forward P/E of 16.1, which means IBM is trading at a discount to the group.
We can also see that IBM currently has a PEG ratio of 2.06. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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IBM (IBM) Stock Moves -0.27%: What You Should Know
IBM (IBM - Free Report) closed the most recent trading day at $127.06, moving -0.27% from the previous trading session. This change was narrower than the S&P 500's 1.14% loss on the day. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.36%.
Coming into today, shares of the technology and consulting company had gained 9.78% in the past month. In that same time, the Computer and Technology sector lost 4.36%, while the S&P 500 lost 1.37%.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. This is expected to be January 24, 2022. In that report, analysts expect IBM to post earnings of $3.79 per share. This would mark year-over-year growth of 83.09%. Meanwhile, our latest consensus estimate is calling for revenue of $18.28 billion, down 10.22% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.39 per share and revenue of $72.75 billion, which would represent changes of +19.84% and -1.18%, respectively, from the prior year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of 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. 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. Within the past 30 days, our consensus EPS projection has moved 0.06% lower. IBM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 12.26 right now. For comparison, its industry has an average Forward P/E of 16.1, which means IBM is trading at a discount to the group.
We can also see that IBM currently has a PEG ratio of 2.06. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.68 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 175, putting it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.