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IBM (IBM) Outperforms Broader Market: What You Need to Know

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IBM (IBM - Free Report) ended the recent trading session at $276.24, demonstrating a +1.53% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.55%. Meanwhile, the Dow experienced a rise of 0.25%, and the technology-dominated Nasdaq saw an increase of 0.63%.

Heading into today, shares of the technology and consulting company had gained 7.25% over the past month, lagging the Computer and Technology sector's gain of 11.3% and outpacing the S&P 500's gain of 6.29% in that time.

The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is slated to reveal its earnings on July 23, 2025. The company's earnings per share (EPS) are projected to be $2.64, reflecting an 8.64% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.59 billion, up 5.2% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $10.95 per share and a revenue of $66.21 billion, demonstrating changes of +6% and +5.5%, respectively, from the preceding year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.02% higher. As of now, IBM holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 24.85 right now. This represents a premium compared to its industry's average Forward P/E of 18.04.

Investors should also note that IBM has a PEG ratio of 5.71 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. IBM's industry had an average PEG ratio of 1.92 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 84, which puts it in the top 35% 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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