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IBM (IBM) Gains As Market Dips: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $252.22, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Coming into today, shares of the technology and consulting company had lost 1.87% in the past month. In that same time, the Computer and Technology sector gained 4.52%, while the S&P 500 gained 2.02%.
The upcoming earnings release of IBM will be of great interest to investors. The company's earnings report is expected on July 22, 2026. In that report, analysts expect IBM to post earnings of $2.95 per share. This would mark year-over-year growth of 5.36%. Simultaneously, our latest consensus estimate expects the revenue to be $17.86 billion, showing a 5.2% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.38 per share and a revenue of $71.53 billion, signifying shifts of +6.82% and +5.92%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for IBM. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. IBM is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 20.12. This signifies a discount in comparison to the average Forward P/E of 28.47 for its industry.
We can also see that IBM currently has a PEG ratio of 2.58. 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. IBM's industry had an average PEG ratio of 1.03 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 16, which puts it in the top 7% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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IBM (IBM) Gains As Market Dips: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $252.22, marking a +1.25% move from the previous day. This move outpaced the S&P 500's daily loss of 0.37%. Meanwhile, the Dow gained 0.29%, and the Nasdaq, a tech-heavy index, lost 1.33%.
Coming into today, shares of the technology and consulting company had lost 1.87% in the past month. In that same time, the Computer and Technology sector gained 4.52%, while the S&P 500 gained 2.02%.
The upcoming earnings release of IBM will be of great interest to investors. The company's earnings report is expected on July 22, 2026. In that report, analysts expect IBM to post earnings of $2.95 per share. This would mark year-over-year growth of 5.36%. Simultaneously, our latest consensus estimate expects the revenue to be $17.86 billion, showing a 5.2% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.38 per share and a revenue of $71.53 billion, signifying shifts of +6.82% and +5.92%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for IBM. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. IBM is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 20.12. This signifies a discount in comparison to the average Forward P/E of 28.47 for its industry.
We can also see that IBM currently has a PEG ratio of 2.58. 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. IBM's industry had an average PEG ratio of 1.03 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 16, which puts it in the top 7% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.