IBM (IBM - Free Report) closed at $134.19 in the latest trading session, marking a +0.07% move from the prior day. This change outpaced the S&P 500's 0.28% loss on the day. Elsewhere, the Dow lost 0.42%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the technology and consulting company had gained 0.13% over the past month. This has lagged the Computer and Technology sector's gain of 5.05% and the S&P 500's gain of 3.31% 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 $4.69 per share, which would represent a year-over-year decline of 3.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.67 billion, down 0.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.13% higher. IBM is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 10.16. Its industry sports an average Forward P/E of 10.16, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Investors should also note that IBM has a PEG ratio of 2.03 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.65 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 49, putting it in the top 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.