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IBM (IBM) Gains As Market Dips: What You Should Know
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IBM (IBM - Free Report) closed at $129.34 in the latest trading session, marking a +0.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Coming into today, shares of the technology and consulting company had lost 0.9% in the past month. In that same time, the Computer and Technology sector gained 6.7%, while the S&P 500 gained 0.07%.
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 $14.29 billion, up 0.62% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.46 per share and revenue of $62.09 billion. These results would represent year-over-year changes of +3.61% and +2.58%, respectively.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. IBM is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 13.67 right now. This represents a premium compared to its industry's average Forward P/E of 10.82.
Meanwhile, IBM's PEG ratio is currently 3.34. 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 1.45 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 81, which puts it in the top 33% 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.
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 $129.34 in the latest trading session, marking a +0.02% move from the prior day. This move outpaced the S&P 500's daily loss of 0.16%. Elsewhere, the Dow lost 0.12%, while the tech-heavy Nasdaq lost 3.64%.
Coming into today, shares of the technology and consulting company had lost 0.9% in the past month. In that same time, the Computer and Technology sector gained 6.7%, while the S&P 500 gained 0.07%.
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 $14.29 billion, up 0.62% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.46 per share and revenue of $62.09 billion. These results would represent year-over-year changes of +3.61% and +2.58%, respectively.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-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. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.05% higher. IBM is holding a Zacks Rank of #2 (Buy) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 13.67 right now. This represents a premium compared to its industry's average Forward P/E of 10.82.
Meanwhile, IBM's PEG ratio is currently 3.34. 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 1.45 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 81, which puts it in the top 33% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.