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) Stock Slides as Market Rises: Facts to Know Before You Trade
Read MoreHide Full Article
In the latest close session, IBM (IBM - Free Report) was down 1.41% at $280.82. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.86%.
Shares of the technology and consulting company have appreciated by 23.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.7%, and the S&P 500's gain of 1.92%.
The upcoming earnings release of IBM will be of great interest to investors. On that day, IBM is projected to report earnings of $2.95 per share, which would represent year-over-year growth of 5.36%. Alongside, our most recent consensus estimate is anticipating revenue of $17.86 billion, indicating a 5.2% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.4 per share and revenue of $71.56 billion, which would represent changes of +6.99% and +5.97%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, IBM possesses a Zacks Rank of #3 (Hold).
With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 22.98. Its industry sports an average Forward P/E of 26.94, so one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 2.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.9 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 22, putting it in the top 10% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
IBM (IBM) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest close session, IBM (IBM - Free Report) was down 1.41% at $280.82. The stock fell short of the S&P 500, which registered a gain of 0.3% for the day. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.86%.
Shares of the technology and consulting company have appreciated by 23.97% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.7%, and the S&P 500's gain of 1.92%.
The upcoming earnings release of IBM will be of great interest to investors. On that day, IBM is projected to report earnings of $2.95 per share, which would represent year-over-year growth of 5.36%. Alongside, our most recent consensus estimate is anticipating revenue of $17.86 billion, indicating a 5.2% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $12.4 per share and revenue of $71.56 billion, which would represent changes of +6.99% and +5.97%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, IBM possesses a Zacks Rank of #3 (Hold).
With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 22.98. Its industry sports an average Forward P/E of 26.94, so one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 2.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.9 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 22, putting it in the top 10% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.