In the latest trading session, IBM (IBM) closed at $115, marking a -0.35% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. Elsewhere, the Dow gained 0.97%, while the tech-heavy Nasdaq added 2.01%.
Coming into today, shares of the technology and consulting company had lost 24.94% in the past month. In that same time, the Computer and Technology sector lost 11.34%, while the S&P 500 lost 7.81%.
IBM will be looking to display strength as it nears its next earnings release, which is expected to be January 17, 2019. On that day, IBM is projected to report earnings of $4.86 per share, which would represent a year-over-year decline of 6.18%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.77 billion, down 3.45% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $13.81 per share and revenue of $79.56 billion. These totals would mark changes of +0.07% and +0.53%, respectively, from last year.
Any recent changes to analyst estimates for IBM should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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 has moved 0.01% lower. IBM is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, IBM is holding a Forward P/E ratio of 8.35. This represents a discount compared to its industry's average Forward P/E of 9.73.
Meanwhile, IBM's PEG ratio is currently 1.68. 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 1.68 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 111, which puts it in the top 44% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
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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