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IBM (IBM) Dips More Than Broader Market: What You Should Know
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IBM (IBM - Free Report) closed at $227.88 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.
Heading into today, shares of the technology and consulting company had lost 7.08% over the past month, lagging the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. The company is scheduled to release its earnings on October 21, 2026. The company is forecasted to report an EPS of $2.87, showcasing a 8.3% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $16.84 billion, indicating a 3.13% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.33 per share and a revenue of $70.42 billion, indicating changes of +6.38% and +4.27%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 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 past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. IBM is currently a Zacks Rank #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 18.71. This valuation marks a discount compared to its industry average Forward P/E of 19.71.
We can additionally observe that IBM currently boasts a PEG ratio of 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.37 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.
View the Zacks #1 Rank List
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IBM (IBM) Dips More Than Broader Market: What You Should Know
IBM (IBM - Free Report) closed at $227.88 in the latest trading session, marking a -1.26% move from the prior day. This change lagged the S&P 500's 1.11% loss on the day. Meanwhile, the Dow lost 0.09%, and the Nasdaq, a tech-heavy index, lost 1.88%.
Heading into today, shares of the technology and consulting company had lost 7.08% over the past month, lagging the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. The company is scheduled to release its earnings on October 21, 2026. The company is forecasted to report an EPS of $2.87, showcasing a 8.3% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $16.84 billion, indicating a 3.13% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $12.33 per share and a revenue of $70.42 billion, indicating changes of +6.38% and +4.27%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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 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 past month, the Zacks Consensus EPS estimate has shifted 0.04% upward. IBM is currently a Zacks Rank #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 18.71. This valuation marks a discount compared to its industry average Forward P/E of 19.71.
We can additionally observe that IBM currently boasts a PEG ratio of 2.2. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.37 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 36, this industry ranks in the top 15% of all industries, numbering over 250.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.