IBM (IBM - Free Report) closed the most recent trading day at $120.67, moving +0.7% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.48%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 0.8%.
Coming into today, shares of the technology and consulting company had lost 0.88% in the past month. In that same time, the Computer and Technology sector lost 1.5%, while the S&P 500 lost 2.09%.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. This is expected to be January 17, 2019. The company is expected to report EPS of $4.85, down 6.37% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.76 billion, down 3.49% from the year-ago period.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% lower. IBM is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 8.56. This valuation marks a discount compared to its industry's average Forward P/E of 8.79.
Investors should also note that IBM has a PEG ratio of 1.72 right now. 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 1.72 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 77, putting it in the top 31% of all 250+ industries.
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.
You can find more information on all of these metrics, and much more, on Zacks.com.