U.S. markets closed
  • S&P 500

    4,566.48
    +21.58 (+0.47%)
     
  • Dow 30

    35,741.15
    +64.13 (+0.18%)
     
  • Nasdaq

    15,226.71
    +136.51 (+0.90%)
     
  • Russell 2000

    2,312.64
    +21.37 (+0.93%)
     
  • Crude Oil

    83.71
    -0.05 (-0.06%)
     
  • Gold

    1,808.90
    +12.60 (+0.70%)
     
  • Silver

    24.65
    +0.20 (+0.82%)
     
  • EUR/USD

    1.1618
    -0.0027 (-0.23%)
     
  • 10-Yr Bond

    1.6350
    -0.0200 (-1.21%)
     
  • GBP/USD

    1.3763
    +0.0004 (+0.03%)
     
  • USD/JPY

    113.7030
    +0.2430 (+0.21%)
     
  • BTC-USD

    62,926.48
    +1,733.77 (+2.83%)
     
  • CMC Crypto 200

    1,502.82
    +1,260.14 (+519.26%)
     
  • FTSE 100

    7,222.82
    +18.27 (+0.25%)
     
  • Nikkei 225

    28,600.41
    -204.44 (-0.71%)
     

IBM (IBM) Gains As Market Dips: What You Should Know

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

IBM (IBM) closed at $138.56 in the latest trading session, marking a +0.78% move from the prior day. This change outpaced the S&P 500's 0.28% loss on the day.

Coming into today, shares of the technology and consulting company had lost 1.38% in the past month. In that same time, the Computer and Technology sector gained 0.55%, while the S&P 500 lost 0.56%.

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 $2.48 per share. This would mark 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.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $10.82 per share and revenue of $74.93 billion. These totals would mark changes of +24.8% and +1.77%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

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 0.17% lower within the past month. IBM is holding a Zacks Rank of #4 (Sell) right now.

Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 12.71 right now. Its industry sports an average Forward P/E of 25.25, so we one might conclude that IBM is trading at a discount comparatively.

Investors should also note that IBM has a PEG ratio of 1.56 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.62 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 208, putting it in the bottom 19% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
International Business Machines Corporation (IBM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.