IBM (IBM - Free Report) closed the most recent trading day at $113.03, moving -0.66% from the previous trading session. This change lagged the S&P 500's 0.12% loss on the day. At the same time, the Dow lost 0.33%, and the tech-heavy Nasdaq gained 0.08%.
Prior to today's trading, shares of the technology and consulting company had lost 6.34% over the past month. This has lagged the Computer and Technology sector's loss of 4.42% and was narrower than the S&P 500's loss of 6.96% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release, which is expected to be January 17, 2019. In that report, analysts expect IBM to post earnings of $4.85 per share. This would mark a year-over-year decline of 6.37%. Meanwhile, our latest consensus estimate is calling for revenue of $21.76 billion, down 3.49% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.81 per share and revenue of $79.56 billion, which would represent changes of +0.07% and +0.52%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-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 has moved 0.02% lower. 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 8.24. Its industry sports an average Forward P/E of 8.67, so we one might conclude that IBM is trading at a discount comparatively.
It is also worth noting that IBM currently has a PEG ratio of 1.66. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 171, which puts it in the bottom 33% 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.