IBM (IBM) closed the most recent trading day at $141.68, moving -0.27% from the previous trading session. This change was narrower than the S&P 500's 0.84% loss on the day. Elsewhere, the Dow lost 0.53%, while the tech-heavy Nasdaq lost 1.47%.
Coming into today, shares of the technology and consulting company had gained 9.29% in the past month. In that same time, the Computer and Technology sector gained 5.21%, while the S&P 500 gained 5.2%.
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 $2.71, down 20.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $18.34 billion, down 2.2% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $12.80 per share and revenue of $77.81 billion. These totals would mark changes of -7.31% and -2.24%, respectively, from last year.
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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 remained stagnant. IBM is currently a Zacks Rank #4 (Sell).
Digging into valuation, IBM currently has a Forward P/E ratio of 11.1. Its industry sports an average Forward P/E of 11.33, so we one might conclude that IBM is trading at a discount comparatively.
Investors should also note that IBM has a PEG ratio of 2.22 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 2.22 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 202, putting it in the bottom 22% 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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