We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
IBM (IBM) Outpaces Stock Market Gains: What You Should Know
Read MoreHide Full Article
IBM (IBM - Free Report) closed at $149.21 in the latest trading session, marking a +1.47% move from the prior day. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today's trading, shares of the technology and consulting company had gained 2.71% over the past month. This has lagged the Computer and Technology sector's gain of 8.36% and the S&P 500's gain of 5.12% 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 $3.57, up 6.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.49 billion, down 7.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.12 per share and revenue of $59.32 billion, which would represent changes of +15.01% and -16.2%, respectively, from the prior year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 16.12. Its industry sports an average Forward P/E of 16.12, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Also, we should mention that IBM has a PEG ratio of 2.43. 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 was holding an average PEG ratio of 1.84 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 202, putting it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IBM (IBM) Outpaces Stock Market Gains: What You Should Know
IBM (IBM - Free Report) closed at $149.21 in the latest trading session, marking a +1.47% move from the prior day. This move outpaced the S&P 500's daily gain of 1.43%. Meanwhile, the Dow gained 1.58%, and the Nasdaq, a tech-heavy index, lost 0.01%.
Prior to today's trading, shares of the technology and consulting company had gained 2.71% over the past month. This has lagged the Computer and Technology sector's gain of 8.36% and the S&P 500's gain of 5.12% 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 $3.57, up 6.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $15.49 billion, down 7.24% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.12 per share and revenue of $59.32 billion, which would represent changes of +15.01% and -16.2%, respectively, from the prior year.
Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 16.12. Its industry sports an average Forward P/E of 16.12, so we one might conclude that IBM is trading at a no noticeable deviation comparatively.
Also, we should mention that IBM has a PEG ratio of 2.43. 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 was holding an average PEG ratio of 1.84 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 202, putting it in the bottom 20% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.