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IBM (IBM) Exceeds Market Returns: Some Facts to Consider
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IBM (IBM - Free Report) closed the latest trading day at $158.56, indicating a +1.37% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.
Shares of the technology and consulting company witnessed a gain of 7.57% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 14.04% and the S&P 500's gain of 10.72%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.73, showcasing a 3.61% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.45 per share and a revenue of $61.54 billion, indicating changes of +3.5% and +1.67%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. IBM presently features a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 16.55. For comparison, its industry has an average Forward P/E of 15.4, which means IBM is trading at a premium to the group.
One should further note that IBM currently holds a PEG ratio of 4.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 2.42.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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) Exceeds Market Returns: Some Facts to Consider
IBM (IBM - Free Report) closed the latest trading day at $158.56, indicating a +1.37% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.38% for the day. Elsewhere, the Dow saw an upswing of 1.47%, while the tech-heavy Nasdaq depreciated by 0.23%.
Shares of the technology and consulting company witnessed a gain of 7.57% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 14.04% and the S&P 500's gain of 10.72%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company is forecasted to report an EPS of $3.73, showcasing a 3.61% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $9.45 per share and a revenue of $61.54 billion, indicating changes of +3.5% and +1.67%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. IBM presently features a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 16.55. For comparison, its industry has an average Forward P/E of 15.4, which means IBM is trading at a premium to the group.
One should further note that IBM currently holds a PEG ratio of 4.26. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 2.42.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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.