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IBM (IBM) Ascends While Market Falls: Some Facts to Note
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In the latest market close, IBM (IBM - Free Report) reached $227.12, with a +0.5% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.96%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The technology and consulting company's stock has climbed by 12.58% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is slated to reveal its earnings on October 23, 2024. In that report, analysts expect IBM to post earnings of $2.25 per share. This would mark year-over-year growth of 2.27%. Simultaneously, our latest consensus estimate expects the revenue to be $15.12 billion, showing a 2.5% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.10 per share and a revenue of $63.25 billion, representing changes of +4.99% and +2.25%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IBM presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, IBM is holding a Forward P/E ratio of 22.37. This denotes a premium relative to the industry's average Forward P/E of 21.37.
Investors should also note that IBM has a PEG ratio of 5.03 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 3.78.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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IBM (IBM) Ascends While Market Falls: Some Facts to Note
In the latest market close, IBM (IBM - Free Report) reached $227.12, with a +0.5% movement compared to the previous day. This move outpaced the S&P 500's daily loss of 0.96%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%.
The technology and consulting company's stock has climbed by 12.58% in the past month, exceeding the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%.
The investment community will be paying close attention to the earnings performance of IBM in its upcoming release. The company is slated to reveal its earnings on October 23, 2024. In that report, analysts expect IBM to post earnings of $2.25 per share. This would mark year-over-year growth of 2.27%. Simultaneously, our latest consensus estimate expects the revenue to be $15.12 billion, showing a 2.5% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.10 per share and a revenue of $63.25 billion, representing changes of +4.99% and +2.25%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. IBM presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, IBM is holding a Forward P/E ratio of 22.37. This denotes a premium relative to the industry's average Forward P/E of 21.37.
Investors should also note that IBM has a PEG ratio of 5.03 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Computer - Integrated Systems industry held an average PEG ratio of 3.78.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 182, placing it within the bottom 28% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.