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IBM (IBM) Gains As Market Dips: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $125.58, marking a +0.1% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the technology and consulting company had lost 7.49% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% 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 $1.27, down 9.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.28 billion, up 0.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $62.06 billion. These totals would mark changes of +3.61% and +2.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 10.62, which means IBM is trading at a premium to the group.
Investors should also note that IBM has a PEG ratio of 3.24 right now. 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 1.38 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 161, which puts it in the bottom 37% 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) Gains As Market Dips: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $125.58, marking a +0.1% move from the previous day. This move outpaced the S&P 500's daily loss of 0.15%. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 3.16%.
Prior to today's trading, shares of the technology and consulting company had lost 7.49% over the past month. This has lagged the Computer and Technology sector's loss of 3.13% and the S&P 500's loss of 5.39% 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 $1.27, down 9.29% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.28 billion, up 0.58% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.46 per share and revenue of $62.06 billion. These totals would mark changes of +3.61% and +2.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 13.27. For comparison, its industry has an average Forward P/E of 10.62, which means IBM is trading at a premium to the group.
Investors should also note that IBM has a PEG ratio of 3.24 right now. 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 1.38 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 161, which puts it in the bottom 37% 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.