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IBM (IBM) Dips More Than Broader Markets: What You Should Know
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IBM (IBM - Free Report) closed the most recent trading day at $145.19, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the technology and consulting company had gained 5.06% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release, which is expected to be January 25, 2023. On that day, IBM is projected to report earnings of $3.57 per share, which would represent year-over-year growth of 6.57%. Meanwhile, our latest consensus estimate is calling for revenue of $15.49 billion, down 7.24% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 remained stagnant. IBM is currently a Zacks Rank #2 (Buy).
Looking at its valuation, IBM is holding a Forward P/E ratio of 15.05. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.05.
We can also see that IBM currently has a PEG ratio of 2.27. 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. IBM's industry had an average PEG ratio of 1.88 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 165, putting it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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IBM (IBM) Dips More Than Broader Markets: What You Should Know
IBM (IBM - Free Report) closed the most recent trading day at $145.19, moving -0.48% from the previous trading session. This move lagged the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 1.14%, while the tech-heavy Nasdaq added 1.39%.
Prior to today's trading, shares of the technology and consulting company had gained 5.06% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 4.01% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release, which is expected to be January 25, 2023. On that day, IBM is projected to report earnings of $3.57 per share, which would represent year-over-year growth of 6.57%. Meanwhile, our latest consensus estimate is calling for revenue of $15.49 billion, down 7.24% from the prior-year quarter.
It is also important to note the recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 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 remained stagnant. IBM is currently a Zacks Rank #2 (Buy).
Looking at its valuation, IBM is holding a Forward P/E ratio of 15.05. This represents a no noticeable deviation compared to its industry's average Forward P/E of 15.05.
We can also see that IBM currently has a PEG ratio of 2.27. 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. IBM's industry had an average PEG ratio of 1.88 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 165, putting it in the bottom 35% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.