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IBM (IBM) Stock Sinks As Market Gains: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $217.07, marking a -25.21% move from the previous day. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
Heading into today, shares of the technology and consulting company had gained 8.01% over the past month, outpacing the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is slated to reveal its earnings on July 22, 2026. On that day, IBM is projected to report earnings of $3.02 per share, which would represent year-over-year growth of 7.86%. Our most recent consensus estimate is calling for quarterly revenue of $17.89 billion, up 5.36% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.45 per share and a revenue of $71.59 billion, signifying shifts of +7.42% and +6%, respectively, from the last year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.52% higher. IBM is currently a Zacks Rank #3 (Hold).
With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 23.32. Its industry sports an average Forward P/E of 27, so one might conclude that IBM is trading at a discount comparatively.
It is also worth noting that IBM currently has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 0.98.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.
View the Zacks #1 Rank List
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IBM (IBM) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $217.07, marking a -25.21% move from the previous day. This change lagged the S&P 500's 0.38% gain on the day. On the other hand, the Dow registered a gain of 0.02%, and the technology-centric Nasdaq increased by 0.9%.
Heading into today, shares of the technology and consulting company had gained 8.01% over the past month, outpacing the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is slated to reveal its earnings on July 22, 2026. On that day, IBM is projected to report earnings of $3.02 per share, which would represent year-over-year growth of 7.86%. Our most recent consensus estimate is calling for quarterly revenue of $17.89 billion, up 5.36% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.45 per share and a revenue of $71.59 billion, signifying shifts of +7.42% and +6%, respectively, from the last year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.52% higher. IBM is currently a Zacks Rank #3 (Hold).
With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 23.32. Its industry sports an average Forward P/E of 27, so one might conclude that IBM is trading at a discount comparatively.
It is also worth noting that IBM currently has a PEG ratio of 2.8. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 0.98.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 6, which puts it in the top 3% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.