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IBM (IBM) Dips More Than Broader Markets: What You Should Know

In the latest trading session, IBM (IBM) closed at $129.30, marking a -0.91% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, added 0.84%.

Prior to today's trading, shares of the technology and consulting company had lost 3.56% over the past month. This has lagged the Computer and Technology sector's loss of 1.67% and the S&P 500's loss of 2% 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 $1.27 per share. This would mark a year-over-year decline of 9.29%. Our most recent consensus estimate is calling for quarterly revenue of $14.28 billion, up 0.58% from the year-ago period.

IBM's full-year Zacks Consensus Estimates are calling for earnings of $9.46 per share and revenue of $62.06 billion. These results would represent year-over-year changes of +3.61% and +2.52%, respectively.

Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.02% higher. IBM is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 13.8. For comparison, its industry has an average Forward P/E of 13.8, which means IBM is trading at a no noticeable deviation to the group.

Investors should also note that IBM has a PEG ratio of 3.37 right now. 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. The Computer - Integrated Systems industry currently had an average PEG ratio of 1.79 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 173, which puts it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

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International Business Machines Corporation (IBM) : Free Stock Analysis Report

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