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IBM (IBM) Stock Falls Amid Market Uptick: What Investors Need to Know
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The most recent trading session ended with IBM (IBM - Free Report) standing at $185.03, reflecting a -0.15% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.9%.
Shares of the technology and consulting company witnessed a gain of 0.89% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.9% and the S&P 500's gain of 3.85%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is forecasted to report an EPS of $1.59, showcasing a 16.91% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.56 billion, up 2.18% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.06 per share and revenue of $63.79 billion, indicating changes of +4.57% and +3.12%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Currently, IBM is carrying a Zacks Rank of #2 (Buy).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 18.41. This represents a premium compared to its industry's average Forward P/E of 17.6.
It is also worth noting that IBM currently has a PEG ratio of 3.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 2.77.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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IBM (IBM) Stock Falls Amid Market Uptick: What Investors Need to Know
The most recent trading session ended with IBM (IBM - Free Report) standing at $185.03, reflecting a -0.15% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.52% for the day. Elsewhere, the Dow gained 0.12%, while the tech-heavy Nasdaq added 0.9%.
Shares of the technology and consulting company witnessed a gain of 0.89% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.9% and the S&P 500's gain of 3.85%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is forecasted to report an EPS of $1.59, showcasing a 16.91% upward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $14.56 billion, up 2.18% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.06 per share and revenue of $63.79 billion, indicating changes of +4.57% and +3.12%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.29% higher within the past month. Currently, IBM is carrying a Zacks Rank of #2 (Buy).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 18.41. This represents a premium compared to its industry's average Forward P/E of 17.6.
It is also worth noting that IBM currently has a PEG ratio of 3.63. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Computer - Integrated Systems industry was having an average PEG ratio of 2.77.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.