In the latest trading session, IBM (IBM - Free Report) closed at $119.41, marking a -1.37% move from the previous day. This move lagged the S&P 500's daily gain of 0.43%. Meanwhile, the Dow gained 0.5%, and the Nasdaq, a tech-heavy index, added 0.75%.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. In that report, analysts expect IBM to post earnings of $2.14 per share. This would mark a year-over-year decline of 32.49%. Our most recent consensus estimate is calling for quarterly revenue of $17.72 billion, down 7.52% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $11.29 per share and revenue of $72.98 billion. These results would represent year-over-year changes of -11.87% and -5.4%, respectively.
Any recent changes to analyst estimates for IBM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 currently has a Zacks Rank of #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 10.73. This represents a discount compared to its industry's average Forward P/E of 12.09.
Investors should also note that IBM has a PEG ratio of 3.15 right now. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 3.15 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 38% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.