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Here's Why IBM (IBM) Fell More Than Broader Market
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IBM (IBM - Free Report) closed the most recent trading day at $189.83, moving -0.59% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.
The the stock of technology and consulting company has risen by 1.47% in the past month, lagging the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.59, signifying a 16.91% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.56 billion, indicating a 2.18% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.07 per share and revenue of $63.79 billion, indicating changes of +4.68% and +3.12%, respectively, compared to the previous year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. At present, IBM boasts a Zacks Rank of #2 (Buy).
In the context of valuation, IBM is at present trading with a Forward P/E ratio of 18.97. This valuation marks a premium compared to its industry's average Forward P/E of 17.49.
Also, we should mention that IBM has a PEG ratio of 3.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 2.64 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.
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Here's Why IBM (IBM) Fell More Than Broader Market
IBM (IBM - Free Report) closed the most recent trading day at $189.83, moving -0.59% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.2% for the day. On the other hand, the Dow registered a loss of 0.6%, and the technology-centric Nasdaq increased by 0.11%.
The the stock of technology and consulting company has risen by 1.47% in the past month, lagging the Computer and Technology sector's gain of 2.99% and the S&P 500's gain of 3.32%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.59, signifying a 16.91% increase compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.56 billion, indicating a 2.18% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.07 per share and revenue of $63.79 billion, indicating changes of +4.68% and +3.12%, respectively, compared to the previous year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.01% higher. At present, IBM boasts a Zacks Rank of #2 (Buy).
In the context of valuation, IBM is at present trading with a Forward P/E ratio of 18.97. This valuation marks a premium compared to its industry's average Forward P/E of 17.49.
Also, we should mention that IBM has a PEG ratio of 3.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 2.64 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 70, which puts it in the top 28% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.