We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBM (IBM) Outperforms Broader Market: What You Need to Know
Read MoreHide Full Article
IBM (IBM - Free Report) ended the recent trading session at $255.96, demonstrating a +2.99% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.
Heading into today, shares of the technology and consulting company had gained 2.58% over the past month, lagging the Computer and Technology sector's gain of 4.48% and the S&P 500's gain of 3.07%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. In that report, analysts expect IBM to post earnings of $2.43 per share. This would mark year-over-year growth of 5.65%. In the meantime, our current consensus estimate forecasts the revenue to be $16.08 billion, indicating a 7.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.12 per share and a revenue of $66.75 billion, demonstrating changes of +7.65% and +6.38%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.28% rise in the Zacks Consensus EPS estimate. IBM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 22.35. This represents a premium compared to its industry average Forward P/E of 20.31.
Also, we should mention that IBM has a PEG ratio of 3.83. 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. IBM's industry had an average PEG ratio of 1.73 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IBM (IBM) Outperforms Broader Market: What You Need to Know
IBM (IBM - Free Report) ended the recent trading session at $255.96, demonstrating a +2.99% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.21%. On the other hand, the Dow registered a gain of 0.25%, and the technology-centric Nasdaq increased by 0.45%.
Heading into today, shares of the technology and consulting company had gained 2.58% over the past month, lagging the Computer and Technology sector's gain of 4.48% and the S&P 500's gain of 3.07%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. In that report, analysts expect IBM to post earnings of $2.43 per share. This would mark year-over-year growth of 5.65%. In the meantime, our current consensus estimate forecasts the revenue to be $16.08 billion, indicating a 7.44% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $11.12 per share and a revenue of $66.75 billion, demonstrating changes of +7.65% and +6.38%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, there's been a 0.28% rise in the Zacks Consensus EPS estimate. IBM is currently a Zacks Rank #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 22.35. This represents a premium compared to its industry average Forward P/E of 20.31.
Also, we should mention that IBM has a PEG ratio of 3.83. 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. IBM's industry had an average PEG ratio of 1.73 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 50, putting it in the top 21% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.