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IBM (IBM) Ascends But Remains Behind Market: Some Facts to Note
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In the latest trading session, IBM (IBM - Free Report) closed at $161.14, marking a +1.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.41%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 2.2%.
The the stock of technology and consulting company has fallen by 1.73% in the past month, lagging the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 2.9%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company's upcoming EPS is projected at $3.73, signifying a 3.61% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.06 billion, reflecting a 2.21% rise from the equivalent quarter last year.
Investors might also notice recent changes 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. IBM presently features a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 16.28. This represents a discount compared to its industry's average Forward P/E of 16.73.
It is also worth noting that IBM currently has a PEG ratio of 4.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.74.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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) Ascends But Remains Behind Market: Some Facts to Note
In the latest trading session, IBM (IBM - Free Report) closed at $161.14, marking a +1.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 1.41%. Meanwhile, the Dow experienced a rise of 0.58%, and the technology-dominated Nasdaq saw an increase of 2.2%.
The the stock of technology and consulting company has fallen by 1.73% in the past month, lagging the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 2.9%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company's upcoming EPS is projected at $3.73, signifying a 3.61% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $17.06 billion, reflecting a 2.21% rise from the equivalent quarter last year.
Investors might also notice recent changes 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant within the past month. IBM presently features a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 16.28. This represents a discount compared to its industry's average Forward P/E of 16.73.
It is also worth noting that IBM currently has a PEG ratio of 4.19. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.74.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 167, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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.