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Here's Why IBM (IBM) Gained But Lagged the Market Today
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IBM (IBM - Free Report) closed the most recent trading day at $139.21, moving +0.54% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.06%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 1.2%.
Coming into today, shares of the technology and consulting company had lost 5.16% in the past month. In that same time, the Computer and Technology sector lost 2.02%, while the S&P 500 lost 3%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to go public on October 25, 2023. In that report, analysts expect IBM to post earnings of $2.13 per share. This would mark year-over-year growth of 17.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.82 billion, up 5.02% from the year-ago period.
Looking at the full year, the 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 take note of any recent adjustments to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, IBM is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 14.68. This expresses a discount compared to the average Forward P/E of 15.85 of its industry.
One should further note that IBM currently holds a PEG ratio of 3.52. 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 1.94 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Here's Why IBM (IBM) Gained But Lagged the Market Today
IBM (IBM - Free Report) closed the most recent trading day at $139.21, moving +0.54% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.06%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 1.2%.
Coming into today, shares of the technology and consulting company had lost 5.16% in the past month. In that same time, the Computer and Technology sector lost 2.02%, while the S&P 500 lost 3%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to go public on October 25, 2023. In that report, analysts expect IBM to post earnings of $2.13 per share. This would mark year-over-year growth of 17.68%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.82 billion, up 5.02% from the year-ago period.
Looking at the full year, the 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 take note of any recent adjustments to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, IBM is carrying a Zacks Rank of #2 (Buy).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 14.68. This expresses a discount compared to the average Forward P/E of 15.85 of its industry.
One should further note that IBM currently holds a PEG ratio of 3.52. 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 1.94 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.