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IBM (IBM) Exceeds Market Returns: Some Facts to Consider
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The most recent trading session ended with IBM (IBM - Free Report) standing at $164.71, reflecting a +0.73% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.7%.
The technology and consulting company's stock has climbed by 10.4% in the past month, exceeding the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.73, indicating a 3.61% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
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 note any recent changes to analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. At present, IBM boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 17.3. This valuation marks a premium compared to its industry's average Forward P/E of 16.75.
One should further note that IBM currently holds a PEG ratio of 4.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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IBM (IBM) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with IBM (IBM - Free Report) standing at $164.71, reflecting a +0.73% shift from the previouse trading day's closing. This move outpaced the S&P 500's daily gain of 0.46%. On the other hand, the Dow registered a gain of 0.48%, and the technology-centric Nasdaq increased by 0.7%.
The technology and consulting company's stock has climbed by 10.4% in the past month, exceeding the Computer and Technology sector's gain of 4.16% and the S&P 500's gain of 4.85%.
Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company is predicted to post an EPS of $3.73, indicating a 3.61% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
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 note any recent changes to analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.12% higher within the past month. At present, IBM boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 17.3. This valuation marks a premium compared to its industry's average Forward P/E of 16.75.
One should further note that IBM currently holds a PEG ratio of 4.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 2.64 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 90, placing it within the top 36% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.