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) Stock Drops Despite Market Gains: Important Facts to Note
Read MoreHide Full Article
IBM (IBM - Free Report) ended the recent trading session at $169.32, demonstrating a -0.62% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.88%.
Heading into today, shares of the technology and consulting company had gained 1.68% over the past month, outpacing the Computer and Technology sector's loss of 4.82% and lagging the S&P 500's gain of 2.85% in that time.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on July 24, 2024. It is anticipated that the company will report an EPS of $2.17, marking a 0.46% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 0.67% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $63.04 billion. These results would represent year-over-year changes of +3.01% and +1.91%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.11% fall in the Zacks Consensus EPS estimate. Right now, IBM possesses a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 17.19. This signifies a premium in comparison to the average Forward P/E of 14.64 for its industry.
One should further note that IBM currently holds a PEG ratio of 4.2. 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 had an average PEG ratio of 2.48 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
IBM (IBM) Stock Drops Despite Market Gains: Important Facts to Note
IBM (IBM - Free Report) ended the recent trading session at $169.32, demonstrating a -0.62% swing from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.27% for the day. On the other hand, the Dow registered a loss of 0.31%, and the technology-centric Nasdaq increased by 0.88%.
Heading into today, shares of the technology and consulting company had gained 1.68% over the past month, outpacing the Computer and Technology sector's loss of 4.82% and lagging the S&P 500's gain of 2.85% in that time.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on July 24, 2024. It is anticipated that the company will report an EPS of $2.17, marking a 0.46% fall compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.58 billion, up 0.67% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.91 per share and revenue of $63.04 billion. These results would represent year-over-year changes of +3.01% and +1.91%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been a 0.11% fall in the Zacks Consensus EPS estimate. Right now, IBM possesses a Zacks Rank of #3 (Hold).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 17.19. This signifies a premium in comparison to the average Forward P/E of 14.64 for its industry.
One should further note that IBM currently holds a PEG ratio of 4.2. 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 had an average PEG ratio of 2.48 as trading concluded yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 31% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.