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IBM (IBM) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest market close, IBM (IBM - Free Report) reached $161.50, with a -1.25% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 1.64%.
The technology and consulting company's stock has climbed by 1.52% in the past month, falling short of the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is expected to report EPS of $3.73, up 3.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 16.73. This indicates a discount in contrast to its industry's Forward P/E of 17.67.
It's also important to note that IBM currently trades at a PEG ratio of 4.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.71.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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IBM (IBM) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest market close, IBM (IBM - Free Report) reached $161.50, with a -1.25% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.07%, while the tech-heavy Nasdaq depreciated by 1.64%.
The technology and consulting company's stock has climbed by 1.52% in the past month, falling short of the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is expected to report EPS of $3.73, up 3.61% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $17.06 billion, up 2.21% from the year-ago period.
It's also important for investors to be aware of any recent modifications to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. 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 16.73. This indicates a discount in contrast to its industry's Forward P/E of 17.67.
It's also important to note that IBM currently trades at a PEG ratio of 4.31. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.71.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 169, positioning it in the bottom 33% 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.