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IBM (IBM - Free Report) ended the recent trading session at $193.34, demonstrating a +0.86% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the technology and consulting company witnessed a gain of 2.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.42% and the S&P 500's gain of 2.97%.
The upcoming earnings release of IBM will be of great interest to investors. The company is expected to report EPS of $1.59, up 16.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.56 billion, up 2.18% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.07 per share and a revenue of $63.79 billion, demonstrating changes of +4.68% and +3.12%, respectively, from the preceding year.
It is also important to note the 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. IBM is currently a Zacks Rank #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 19.05. For comparison, its industry has an average Forward P/E of 17.45, which means IBM is trading at a premium to the group.
It's also important to note that IBM currently trades at a PEG ratio of 3.76. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 2.62 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why IBM (IBM) Outpaced the Stock Market Today
IBM (IBM - Free Report) ended the recent trading session at $193.34, demonstrating a +0.86% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.57%. Elsewhere, the Dow saw an upswing of 0.83%, while the tech-heavy Nasdaq appreciated by 0.39%.
Shares of the technology and consulting company witnessed a gain of 2.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 3.42% and the S&P 500's gain of 2.97%.
The upcoming earnings release of IBM will be of great interest to investors. The company is expected to report EPS of $1.59, up 16.91% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.56 billion, up 2.18% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.07 per share and a revenue of $63.79 billion, demonstrating changes of +4.68% and +3.12%, respectively, from the preceding year.
It is also important to note the 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 suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. IBM is currently a Zacks Rank #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 19.05. For comparison, its industry has an average Forward P/E of 17.45, which means IBM is trading at a premium to the group.
It's also important to note that IBM currently trades at a PEG ratio of 3.76. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 2.62 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 99, positioning it in the top 40% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.