IBM (IBM) closed the most recent trading day at $132.64, moving +0.17% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.2%. Elsewhere, the Dow lost 0.59%, while the tech-heavy Nasdaq lost 1.54%.
Heading into today, shares of the technology and consulting company had gained 7.09% over the past month, lagging the Computer and Technology sector's gain of 12.17% and outpacing the S&P 500's gain of 4.14% in that time.
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 $1.98 per share. This would mark a year-over-year decline of 14.29%. Meanwhile, our latest consensus estimate is calling for revenue of $15.49 billion, down 0.28% from the prior-year quarter.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.30 per share and revenue of $61.88 billion. These results would represent year-over-year changes of +1.86% and +2.23%, respectively.
Any recent changes to analyst estimates for IBM should also be noted by investors. 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 0.04% higher within the past month. IBM is currently a Zacks Rank #3 (Hold).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 14.23. Its industry sports an average Forward P/E of 15.94, so we one might conclude that IBM is trading at a discount comparatively.
Also, we should mention that IBM has a PEG ratio of 3.49. 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 1.83 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 164, which puts it in the bottom 35% 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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