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Here's Why IBM (IBM) Fell More Than Broader Market
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In the latest market close, IBM (IBM - Free Report) reached $160.28, with a -0.69% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.59%.
Coming into today, shares of the technology and consulting company had gained 8.44% in the past month. In that same time, the Computer and Technology sector gained 6.19%, while the S&P 500 gained 5.08%.
Investors will be eagerly watching for 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. Alongside, our most recent consensus estimate is anticipating revenue of $17.06 billion, indicating a 2.21% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.45 per share and revenue of $61.54 billion, indicating changes of +3.5% and +1.67%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Currently, IBM is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 17.07. This indicates a premium in contrast to its industry's Forward P/E of 15.79.
Meanwhile, IBM's PEG ratio is currently 4.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 2.55 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why IBM (IBM) Fell More Than Broader Market
In the latest market close, IBM (IBM - Free Report) reached $160.28, with a -0.69% movement compared to the previous day. This change lagged the S&P 500's daily loss of 0.39%. Elsewhere, the Dow lost 0.19%, while the tech-heavy Nasdaq lost 0.59%.
Coming into today, shares of the technology and consulting company had gained 8.44% in the past month. In that same time, the Computer and Technology sector gained 6.19%, while the S&P 500 gained 5.08%.
Investors will be eagerly watching for 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. Alongside, our most recent consensus estimate is anticipating revenue of $17.06 billion, indicating a 2.21% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9.45 per share and revenue of $61.54 billion, indicating changes of +3.5% and +1.67%, respectively, compared to the previous year.
Investors should also take note of any recent adjustments to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.14% higher within the past month. Currently, IBM is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 17.07. This indicates a premium in contrast to its industry's Forward P/E of 15.79.
Meanwhile, IBM's PEG ratio is currently 4.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer - Integrated Systems industry stood at 2.55 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 92, finds itself in the top 37% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.