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IBM (IBM) Exceeds Market Returns: Some Facts to Consider
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IBM (IBM - Free Report) closed at $277.80 in the latest trading session, marking a +2.27% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.18%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 2.07%.
Prior to today's trading, shares of the technology and consulting company had lost 8.79% lagged the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company is forecasted to report an EPS of $3.02, showcasing a 7.86% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $17.89 billion, up 5.36% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.4 per share and a revenue of $71.59 billion, indicating changes of +6.99% and +6%, respectively, from the former 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. IBM currently has a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 21.91. This expresses a discount compared to the average Forward P/E of 28.17 of its industry.
We can additionally observe that IBM currently boasts a PEG ratio of 2.81. 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. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.98 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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IBM (IBM) Exceeds Market Returns: Some Facts to Consider
IBM (IBM - Free Report) closed at $277.80 in the latest trading session, marking a +2.27% move from the prior day. The stock's change was more than the S&P 500's daily gain of 1.18%. Meanwhile, the Dow experienced a rise of 0.59%, and the technology-dominated Nasdaq saw an increase of 2.07%.
Prior to today's trading, shares of the technology and consulting company had lost 8.79% lagged the Computer and Technology sector's loss of 5.33% and the S&P 500's loss of 2.9%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on July 22, 2026. The company is forecasted to report an EPS of $3.02, showcasing a 7.86% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $17.89 billion, up 5.36% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.4 per share and a revenue of $71.59 billion, indicating changes of +6.99% and +6%, respectively, from the former 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 a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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 past month, there's been a 0.02% fall in the Zacks Consensus EPS estimate. IBM currently has a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 21.91. This expresses a discount compared to the average Forward P/E of 28.17 of its industry.
We can additionally observe that IBM currently boasts a PEG ratio of 2.81. 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. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.98 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 3, finds itself in the top 2% echelons 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.