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IBM (IBM) Rises But Trails Market: What Investors Should Know
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The most recent trading session ended with IBM (IBM - Free Report) standing at $142.20, reflecting a +0.12% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.
Heading into today, shares of the technology and consulting company had lost 3.83% over the past month, lagging the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39% in that time.
The upcoming earnings release of IBM will be of great interest to investors. On that day, IBM is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 17.68%. Simultaneously, our latest consensus estimate expects the revenue to be $14.82 billion, showing a 5.02% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.43 per share and a revenue of $61.49 billion, signifying shifts of +3.29% and +1.58%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is currently a Zacks Rank #2 (Buy).
Digging into valuation, IBM currently has a Forward P/E ratio of 15.06. This signifies a discount in comparison to the average Forward P/E of 16.08 for its industry.
We can also see that IBM currently has a PEG ratio of 3.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.98.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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IBM (IBM) Rises But Trails Market: What Investors Should Know
The most recent trading session ended with IBM (IBM - Free Report) standing at $142.20, reflecting a +0.12% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.63%. On the other hand, the Dow registered a gain of 0.59%, and the technology-centric Nasdaq increased by 0.39%.
Heading into today, shares of the technology and consulting company had lost 3.83% over the past month, lagging the Computer and Technology sector's loss of 2.3% and the S&P 500's loss of 3.39% in that time.
The upcoming earnings release of IBM will be of great interest to investors. On that day, IBM is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 17.68%. Simultaneously, our latest consensus estimate expects the revenue to be $14.82 billion, showing a 5.02% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $9.43 per share and a revenue of $61.49 billion, signifying shifts of +3.29% and +1.58%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is currently a Zacks Rank #2 (Buy).
Digging into valuation, IBM currently has a Forward P/E ratio of 15.06. This signifies a discount in comparison to the average Forward P/E of 16.08 for its industry.
We can also see that IBM currently has a PEG ratio of 3.61. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.98.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.