IBM (IBM - Free Report) closed the most recent trading day at $142.77, moving -0.6% from the previous trading session. This change lagged the S&P 500's daily gain of 0.21%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq lost 0.05%.
Prior to today's trading, shares of the technology and consulting company had gained 4.85% over the past month. This has lagged the Computer and Technology sector's gain of 5.1% and outpaced the S&P 500's gain of 2.57% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. On that day, IBM is projected to report earnings of $2.22 per share, which would represent a year-over-year decline of 9.39%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.65 billion, down 2.2% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $13.91 per share and revenue of $78.13 billion, which would represent changes of +0.72% and -1.84%, respectively, from the prior year.
Investors might also notice 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 company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, IBM is holding a Forward P/E ratio of 10.32. Its industry sports an average Forward P/E of 10.32, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Also, we should mention that IBM has a PEG ratio of 2.54. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 2.54 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 49, which puts it in the top 20% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.