IBM (IBM - Free Report) closed the most recent trading day at $137.72, moving +1.95% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.47%. At the same time, the Dow added 0.79%, and the tech-heavy Nasdaq gained 2.02%.
Heading into today, shares of the technology and consulting company had gained 1.43% over the past month, lagging the Computer and Technology sector's gain of 2.44% and the S&P 500's gain of 1.5% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. In that report, analysts expect IBM to post earnings of $2.22 per share. This would mark a year-over-year decline of 9.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.77 billion, down 1.57% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.92 per share and revenue of $78.31 billion, which would represent changes of +0.8% and -1.61%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. 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 9.71. For comparison, its industry has an average Forward P/E of 9.71, which means IBM is trading at a no noticeable deviation to the group.
Investors should also note that IBM has a PEG ratio of 2.39 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 2.39 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 32, which puts it in the top 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.