IBM (IBM - Free Report) closed the most recent trading day at $121.48, moving -1.24% from the previous trading session. This change lagged the S&P 500's daily loss of 0.22%. Elsewhere, the Dow lost 0.11%, while the tech-heavy Nasdaq lost 0.25%.
Heading into today, shares of the technology and consulting company had gained 6.56% over the past month, outpacing the Computer and Technology sector's gain of 1.37% and the S&P 500's gain of 3.57% in that time.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2019. On that day, IBM is projected to report earnings of $4.86 per share, which would represent a year-over-year decline of 6.18%. Meanwhile, our latest consensus estimate is calling for revenue of $21.77 billion, down 3.45% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $13.81 per share and revenue of $79.56 billion. These results would represent year-over-year changes of +0.07% and +0.53%, respectively.
Investors should also note any recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IBM currently has a Zacks Rank of #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 8.9. For comparison, its industry has an average Forward P/E of 10.32, which means IBM is trading at a discount to the group.
It is also worth noting that IBM currently has a PEG ratio of 1.79. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 34% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.