Back to top

Image: Bigstock

IBM (IBM) Stock Moves -0.57%: What You Should Know

Read MoreHide Full Article

In the latest trading session, IBM (IBM - Free Report) closed at $122.01, marking a -0.57% move from the previous day. This change was narrower than the S&P 500's daily loss of 1.03%. Elsewhere, the Dow lost 1.11%, while the tech-heavy Nasdaq lost 0.12%.

Heading into today, shares of the technology and consulting company had lost 5.88% over the past month, outpacing the Computer and Technology sector's loss of 13.11% and the S&P 500's loss of 10.4% 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 $1.88 per share. This would mark a year-over-year decline of 25.4%. Meanwhile, our latest consensus estimate is calling for revenue of $13.75 billion, down 21.96% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.39 per share and revenue of $59.9 billion. These totals would mark changes of +18.41% and -15.38%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.88% lower. IBM is currently a Zacks Rank #4 (Sell).

Digging into valuation, IBM currently has a Forward P/E ratio of 13.07. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 13.07.

We can also see that IBM currently has a PEG ratio of 1.87. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.65 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 192, putting it in the bottom 24% 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.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


International Business Machines Corporation (IBM) - free report >>

Published in