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IBM (IBM) Dips More Than Broader Markets: What You Should Know
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In the latest trading session, IBM (IBM - Free Report) closed at $128.10, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the technology and consulting company had gained 3.55% in the past month. In that same time, the Computer and Technology sector gained 1.92%, while the S&P 500 gained 2.67%.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $1.35, down 23.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.81 billion, down 22.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.09 per share and revenue of $60.55 billion, which would represent changes of +27.24% and -14.46%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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).
Digging into valuation, IBM currently has a Forward P/E ratio of 12.76. Its industry sports an average Forward P/E of 16.88, so we one might conclude that IBM is trading at a discount comparatively.
Meanwhile, IBM's PEG ratio is currently 1.18. 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. IBM's industry had an average PEG ratio of 1.38 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 207, putting it in the bottom 19% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.
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IBM (IBM) Dips More Than Broader Markets: What You Should Know
In the latest trading session, IBM (IBM - Free Report) closed at $128.10, marking a -0.51% move from the previous day. This change lagged the S&P 500's 0.04% loss on the day. Elsewhere, the Dow lost 0.58%, while the tech-heavy Nasdaq lost 0.18%.
Coming into today, shares of the technology and consulting company had gained 3.55% in the past month. In that same time, the Computer and Technology sector gained 1.92%, while the S&P 500 gained 2.67%.
Investors will be hoping for strength from IBM as it approaches its next earnings release. The company is expected to report EPS of $1.35, down 23.73% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $13.81 billion, down 22.09% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $10.09 per share and revenue of $60.55 billion, which would represent changes of +27.24% and -14.46%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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).
Digging into valuation, IBM currently has a Forward P/E ratio of 12.76. Its industry sports an average Forward P/E of 16.88, so we one might conclude that IBM is trading at a discount comparatively.
Meanwhile, IBM's PEG ratio is currently 1.18. 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. IBM's industry had an average PEG ratio of 1.38 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 207, putting it in the bottom 19% 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.
To follow IBM in the coming trading sessions, be sure to utilize Zacks.com.