Yahoo Finance IBM (IBM) Dips More Than Broader Markets: What You Should Know
IBM (IBM) closed the most recent trading day at $110.89, moving -1.81% from the previous trading session. This change lagged the S&P 500's 1.6% loss on the day. Meanwhile, the Dow lost 1.84%, and the Nasdaq, a tech-heavy index, lost 0.95%.
Prior to today's trading, shares of the technology and consulting company had lost 15.91% over the past month. This has lagged the Computer and Technology sector's loss of 9.68% and the S&P 500's loss of 10.82% in that time.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. The company is expected to report EPS of $4.69, up 108.44% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $18.25 billion, up 0.35% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $13.06 per share and revenue of $76.71 billion. These results would represent year-over-year changes of +1.95% and -0.57%, respectively.
Investors might also notice recent changes to analyst estimates for IBM. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.24% lower. IBM is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 8.65. Its industry sports an average Forward P/E of 6.85, so we one might conclude that IBM is trading at a premium comparatively.
It is also worth noting that IBM currently has a PEG ratio of 1.58. 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. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.24 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 169, putting it in the bottom 34% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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International Business Machines Corporation (IBM) : Free Stock Analysis Report
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