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IBM (IBM) Gains As Market Dips: What You Should Know
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IBM (IBM - Free Report) closed at $125.74 in the latest trading session, marking a +0.19% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the technology and consulting company had lost 0.96% over the past month, outpacing the Computer and Technology sector's loss of 4.64% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $1.88, down 25.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.75 billion, down 21.96% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.39 per share and revenue of $59.9 billion. These results would represent year-over-year changes of +18.41% and -15.38%, respectively.
Investors might also notice recent changes to analyst estimates for IBM. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.88% lower. IBM currently has a Zacks Rank of #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 13.37, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Investors should also note that IBM has a PEG ratio of 1.91 right now. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.75 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 65, which puts it in the top 26% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.
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IBM (IBM) Gains As Market Dips: What You Should Know
IBM (IBM - Free Report) closed at $125.74 in the latest trading session, marking a +0.19% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.2%. At the same time, the Dow lost 0.14%, and the tech-heavy Nasdaq lost 0.12%.
Heading into today, shares of the technology and consulting company had lost 0.96% over the past month, outpacing the Computer and Technology sector's loss of 4.64% and the S&P 500's loss of 3.29% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $1.88, down 25.4% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.75 billion, down 21.96% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.39 per share and revenue of $59.9 billion. These results would represent year-over-year changes of +18.41% and -15.38%, respectively.
Investors might also notice recent changes to analyst estimates for IBM. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Within the past 30 days, our consensus EPS projection has moved 0.88% lower. IBM currently has a Zacks Rank of #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 13.37. Its industry sports an average Forward P/E of 13.37, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Investors should also note that IBM has a PEG ratio of 1.91 right now. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.75 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 65, which puts it in the top 26% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.