IBM (IBM - Free Report) closed the most recent trading day at $135.95, moving +0.9% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.05%, and the tech-heavy Nasdaq lost 0.01%.
Prior to today's trading, shares of the technology and consulting company had gained 2.53% over the past month. This has outpaced the Computer and Technology sector's loss of 1.99% and the S&P 500's gain of 0.34% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. On that day, IBM is projected to report earnings of $3.06 per share, which would represent a year-over-year decline of 0.65%. Our most recent consensus estimate is calling for quarterly revenue of $19.11 billion, down 4.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.89 per share and revenue of $76.82 billion. These totals would mark changes of +0.58% and -3.49%, respectively, from last year.
Investors should also note any 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.
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 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 9.7. Its industry sports an average Forward P/E of 10.68, so we one might conclude that IBM is trading at a discount comparatively.
Meanwhile, IBM's PEG ratio is currently 2.45. 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. IBM's industry had an average PEG ratio of 2.45 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 32% 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.