In the latest trading session, IBM (IBM - Free Report) closed at $131.49, marking a -0.9% move from the previous day. This change lagged the S&P 500's daily gain of 0.82%. At the same time, the Dow added 0.82%, and the tech-heavy Nasdaq gained 0.64%.
Prior to today's trading, shares of the technology and consulting company had lost 3.6% over the past month. This has was narrower than the Computer and Technology sector's loss of 8.68% and the S&P 500's loss of 4.58% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. The company is expected to report EPS of $3.06, down 0.65% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $19.11 billion, down 4.45% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $13.89 per share and revenue of $76.82 billion. These results would represent year-over-year changes of +0.58% and -3.49%, respectively.
It is also important to note the recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. 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 9.56. This represents a discount compared to its industry's average Forward P/E of 11.24.
Investors should also note that IBM has a PEG ratio of 2.41 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. The Computer - Integrated Systems was holding an average PEG ratio of 2.41 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 26% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.