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IBM (IBM) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $132.06, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Prior to today's trading, shares of the technology and consulting company had gained 1.12% over the past month. This has lagged the Computer and Technology sector's gain of 10.71% and the S&P 500's gain of 3.71% 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 $3.60 per share. This would mark year-over-year growth of 157.14%. Meanwhile, our latest consensus estimate is calling for revenue of $14.29 billion, up 0.62% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. IBM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 13.85. For comparison, its industry has an average Forward P/E of 10.91, which means IBM is trading at a premium to the group.
We can also see that IBM currently has a PEG ratio of 3.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.54 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 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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IBM (IBM) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $132.06, marking a +0.74% move from the previous day. This move outpaced the S&P 500's daily gain of 0.37%. Elsewhere, the Dow gained 0.98%, while the tech-heavy Nasdaq added 0.62%.
Prior to today's trading, shares of the technology and consulting company had gained 1.12% over the past month. This has lagged the Computer and Technology sector's gain of 10.71% and the S&P 500's gain of 3.71% 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 $3.60 per share. This would mark year-over-year growth of 157.14%. Meanwhile, our latest consensus estimate is calling for revenue of $14.29 billion, up 0.62% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.05% higher within the past month. IBM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 13.85. For comparison, its industry has an average Forward P/E of 10.91, which means IBM is trading at a premium to the group.
We can also see that IBM currently has a PEG ratio of 3.39. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.54 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 172, which puts it in the bottom 32% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.