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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 $140.80, marking a +0.36% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the technology and consulting company had lost 5.16% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. 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.
It is also important to note the recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 14.87. For comparison, its industry has an average Forward P/E of 15.72, which means IBM is trading at a discount to the group.
Also, we should mention that IBM has a PEG ratio of 3.56. 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 2.05 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 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $140.80, marking a +0.36% move from the previous day. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the technology and consulting company had lost 5.16% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. 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.
It is also important to note the recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 14.87. For comparison, its industry has an average Forward P/E of 15.72, which means IBM is trading at a discount to the group.
Also, we should mention that IBM has a PEG ratio of 3.56. 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 2.05 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 166, which puts it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.