In the latest trading session, IBM (IBM) closed at $127.73, marking a -1.4% move from the previous day. This move was narrower than the S&P 500's daily loss of 1.71%. Meanwhile, the Dow lost 0.98%, and the Nasdaq, a tech-heavy index, lost 1.87%.
Coming into today, shares of the technology and consulting company had lost 17.36% in the past month. In that same time, the Computer and Technology sector lost 8.08%, while the S&P 500 lost 9.13%.
Investors will be hoping for strength from IBM as it approaches its next earnings release. In that report, analysts expect IBM to post earnings of $1.95 per share. This would mark a year-over-year decline of 13.33%. Our most recent consensus estimate is calling for quarterly revenue of $18.25 billion, up 0.39% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $13.36 per share and revenue of $78.61 billion. These results would represent year-over-year changes of +4.29% and +1.89%, respectively.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, IBM currently has a Forward P/E ratio of 9.7. This valuation marks a premium compared to its industry's average Forward P/E of 8.98.
It is also worth noting that IBM currently has a PEG ratio of 1.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.39 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 51, putting it in the top 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
International Business Machines Corporation (NYSE:IBM): Free Stock Analysis Report
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