IBM (IBM - Free Report) closed the most recent trading day at $135.82, moving -0.57% from the previous trading session. This change lagged the S&P 500's daily loss of 0.15%. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.24%.
Heading into today, shares of the technology and consulting company had gained 1.84% over the past month, lagging the Computer and Technology sector's gain of 7.03% and the S&P 500's gain of 3.88% in that time.
IBM will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $4.69, down 3.7% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $21.69 billion, down 0.3% 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 has moved 0.18% higher. IBM is currently a Zacks Rank #3 (Hold).
Digging into valuation, IBM currently has a Forward P/E ratio of 10.34. This represents a no noticeable deviation compared to its industry's average Forward P/E of 10.34.
It is also worth noting that IBM currently has a PEG ratio of 2.07. 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 1.66 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 110, putting it in the top 44% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.