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IBM (IBM - Free Report) ended the recent trading session at $225.57, demonstrating a +2.56% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Heading into today, shares of the technology and consulting company had lost 5.08% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
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 October 21, 2026. The company is predicted to post an EPS of $2.9, indicating a 9.43% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.88 billion, indicating a 3.34% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.33 per share and a revenue of $70.39 billion, representing changes of +6.38% and +4.22%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. IBM is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 17.84. This valuation marks a discount compared to its industry average Forward P/E of 21.47.
One should further note that IBM currently holds a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.67 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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) Rises Higher Than Market: Key Facts
IBM (IBM - Free Report) ended the recent trading session at $225.57, demonstrating a +2.56% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Heading into today, shares of the technology and consulting company had lost 5.08% over the past month, lagging the Computer and Technology sector's gain of 4.78% and the S&P 500's loss of 0.35%.
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 October 21, 2026. The company is predicted to post an EPS of $2.9, indicating a 9.43% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.88 billion, indicating a 3.34% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $12.33 per share and a revenue of $70.39 billion, representing changes of +6.38% and +4.22%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for IBM. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 past month, there's been a 0.01% fall in the Zacks Consensus EPS estimate. IBM is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 17.84. This valuation marks a discount compared to its industry average Forward P/E of 21.47.
One should further note that IBM currently holds a PEG ratio of 2.1. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Computer - Integrated Systems industry stood at 0.67 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 97, putting it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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.