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In the latest trading session, IBM (IBM - Free Report) closed at $306.13, marking a +2.21% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Heading into today, shares of the technology and consulting company had gained 6.66% over the past month, outpacing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to be unveiled 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.
For the full year, the Zacks Consensus Estimates project earnings of $12.45 per share and a revenue of $71.59 billion, demonstrating changes of +7.42% and +6%, respectively, from the preceding year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% higher. IBM is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 24.07. This indicates a discount in contrast to its industry's Forward P/E of 27.52.
It's also important to note that IBM currently trades at a PEG ratio of 3.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.03.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Image: Bigstock
Why the Market Dipped But IBM (IBM) Gained Today
In the latest trading session, IBM (IBM - Free Report) closed at $306.13, marking a +2.21% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.45%. Meanwhile, the Dow lost 0.25%, and the Nasdaq, a tech-heavy index, lost 1.16%.
Heading into today, shares of the technology and consulting company had gained 6.66% over the past month, outpacing the Computer and Technology sector's gain of 0.38% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to be unveiled 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.
For the full year, the Zacks Consensus Estimates project earnings of $12.45 per share and a revenue of $71.59 billion, demonstrating changes of +7.42% and +6%, respectively, from the preceding year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.39% higher. IBM is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 24.07. This indicates a discount in contrast to its industry's Forward P/E of 27.52.
It's also important to note that IBM currently trades at a PEG ratio of 3.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 1.03.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 5, this industry ranks in the top 3% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.