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IBM (IBM) Gains But Lags Market: What You Should Know
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IBM (IBM - Free Report) closed at $148.38 in the latest trading session, marking a +0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Coming into today, shares of the technology and consulting company had gained 3.19% in the past month. In that same time, the Computer and Technology sector gained 1.08%, while the S&P 500 lost 0.73%.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $2.13, up 17.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.82 billion, up 5.02% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.43 per share and revenue of $61.49 billion. These totals would mark changes of +3.29% and +1.58%, 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. 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 remained stagnant. IBM is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 15.65. This valuation marks a discount compared to its industry's average Forward P/E of 16.71.
Investors should also note that IBM has a PEG ratio of 3.75 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 2.06 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 174, putting it in the bottom 31% 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 But Lags Market: What You Should Know
IBM (IBM - Free Report) closed at $148.38 in the latest trading session, marking a +0.47% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq gained 1.14%.
Coming into today, shares of the technology and consulting company had gained 3.19% in the past month. In that same time, the Computer and Technology sector gained 1.08%, while the S&P 500 lost 0.73%.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $2.13, up 17.68% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $14.82 billion, up 5.02% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.43 per share and revenue of $61.49 billion. These totals would mark changes of +3.29% and +1.58%, 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. 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 remained stagnant. IBM is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 15.65. This valuation marks a discount compared to its industry's average Forward P/E of 16.71.
Investors should also note that IBM has a PEG ratio of 3.75 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 2.06 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 174, putting it in the bottom 31% 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.