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IBM (IBM) Dips More Than Broader Markets: What You Should Know
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IBM (IBM - Free Report) closed at $135.96 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Prior to today's trading, shares of the technology and consulting company had gained 7.83% over the past month. This has lagged the Computer and Technology sector's gain of 8.33% and outpaced the S&P 500's gain of 5.36% in that time.
IBM will be looking to display strength as it nears its next earnings release. On that day, IBM is projected to report earnings of $1.98 per share, which would represent a year-over-year decline of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $15.5 billion, down 0.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.31 per share and revenue of $61.89 billion, which would represent changes of +1.97% and +2.25%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% higher. IBM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 14.77 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.77.
Investors should also note that IBM has a PEG ratio of 3.63 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 1.85 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) Dips More Than Broader Markets: What You Should Know
IBM (IBM - Free Report) closed at $135.96 in the latest trading session, marking a -1.11% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. Meanwhile, the Dow lost 0.72%, and the Nasdaq, a tech-heavy index, lost 5.08%.
Prior to today's trading, shares of the technology and consulting company had gained 7.83% over the past month. This has lagged the Computer and Technology sector's gain of 8.33% and outpaced the S&P 500's gain of 5.36% in that time.
IBM will be looking to display strength as it nears its next earnings release. On that day, IBM is projected to report earnings of $1.98 per share, which would represent a year-over-year decline of 14.29%. Our most recent consensus estimate is calling for quarterly revenue of $15.5 billion, down 0.21% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.31 per share and revenue of $61.89 billion, which would represent changes of +1.97% and +2.25%, respectively, from the prior 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 a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 0.04% higher. IBM is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 14.77 right now. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 14.77.
Investors should also note that IBM has a PEG ratio of 3.63 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 1.85 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.