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IBM (IBM) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, IBM (IBM - Free Report) was down 2.37% at $227.25. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of technology and consulting company has risen by 1.26% in the past month, lagging the Computer and Technology sector's gain of 5.26% and overreaching the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on October 21, 2026. It is anticipated that the company will report an EPS of $2.9, marking a 9.43% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $16.88 billion, up 3.34% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.33 per share and revenue of $70.39 billion, indicating changes of +6.38% and +4.22%, respectively, compared to the previous 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. IBM is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, IBM is at present trading with a Forward P/E ratio of 18.88. For comparison, its industry has an average Forward P/E of 21.84, which means IBM is trading at a discount to the group.
We can additionally observe that IBM currently boasts a PEG ratio of 2.22. 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 Computer - Integrated Systems industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
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.
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) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, IBM (IBM - Free Report) was down 2.37% at $227.25. The stock trailed the S&P 500, which registered a daily loss of 0.03%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.01%.
The stock of technology and consulting company has risen by 1.26% in the past month, lagging the Computer and Technology sector's gain of 5.26% and overreaching the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on October 21, 2026. It is anticipated that the company will report an EPS of $2.9, marking a 9.43% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $16.88 billion, up 3.34% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $12.33 per share and revenue of $70.39 billion, indicating changes of +6.38% and +4.22%, respectively, compared to the previous 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. The Zacks Consensus EPS estimate has moved 0.01% lower within the past month. IBM is holding a Zacks Rank of #4 (Sell) right now.
In the context of valuation, IBM is at present trading with a Forward P/E ratio of 18.88. For comparison, its industry has an average Forward P/E of 21.84, which means IBM is trading at a discount to the group.
We can additionally observe that IBM currently boasts a PEG ratio of 2.22. 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 Computer - Integrated Systems industry currently had an average PEG ratio of 0.68 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 32% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.