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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 $142.88, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the technology and consulting company had gained 2.55% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. In that report, analysts expect IBM to post earnings of $2.28 per share. This would mark a year-over-year decline of 2.15%. Our most recent consensus estimate is calling for quarterly revenue of $15.06 billion, down 19.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.89 per share and revenue of $60.99 billion. These totals would mark changes of +24.72% and -13.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 14.28. This valuation marks a discount compared to its industry's average Forward P/E of 14.57.
We can also see that IBM currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.66 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 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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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 $142.88, moving +1.2% from the previous trading session. This change outpaced the S&P 500's 0.31% gain on the day. At the same time, the Dow added 0.05%, and the tech-heavy Nasdaq gained 0.14%.
Heading into today, shares of the technology and consulting company had gained 2.55% over the past month, outpacing the Computer and Technology sector's loss of 3.62% and the S&P 500's loss of 1.38% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. In that report, analysts expect IBM to post earnings of $2.28 per share. This would mark a year-over-year decline of 2.15%. Our most recent consensus estimate is calling for quarterly revenue of $15.06 billion, down 19.68% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.89 per share and revenue of $60.99 billion. These totals would mark changes of +24.72% and -13.84%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 14.28. This valuation marks a discount compared to its industry's average Forward P/E of 14.57.
We can also see that IBM currently has a PEG ratio of 1.58. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.66 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 76, putting it in the top 31% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.