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IBM (IBM) closed at $134.31 in the latest trading session, marking a -0.68% move from the prior day. This change was narrower than the S&P 500's daily loss of 1.7%.
Prior to today's trading, shares of the technology and consulting company had lost 2.79% over the past month. This has lagged the Computer and Technology sector's gain of 2.54% and the S&P 500's loss of 0.27% in that time.
IBM will be looking to display strength as it nears its next earnings release. On that day, IBM is projected to report earnings of $2.48 per share, which would represent a year-over-year decline of 3.88%. Meanwhile, our latest consensus estimate is calling for revenue of $17.74 billion, up 1.03% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $10.82 per share and revenue of $74.93 billion. These results would represent year-over-year changes of +24.8% and +1.77%, respectively.
Investors should also note any recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 has moved 0.17% lower. IBM is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, IBM currently has a Forward P/E ratio of 12.5. This represents a discount compared to its industry's average Forward P/E of 24.54.
We can also see that IBM currently has a PEG ratio of 1.54. 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 1.59 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 121, putting it in the top 48% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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International Business Machines Corporation (IBM) : Free Stock Analysis Report
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