In the latest trading session, IBM (IBM) closed at $133.90, marking a -0.01% move from the previous day. This change was narrower than the S&P 500's 0.11% loss on the day. At the same time, the Dow lost 0.1%, and the tech-heavy Nasdaq lost 0.07%.
Coming into today, shares of the technology and consulting company had lost 1.14% in the past month. In that same time, the Computer and Technology sector gained 1.17%, while the S&P 500 gained 1.62%.
Wall Street will be looking for positivity from IBM as it approaches its next earnings report date. On that day, IBM is projected to report earnings of $4.68 per share, which would represent a year-over-year decline of 3.9%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $21.65 billion, down 0.49% from the year-ago period.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $12.80 per share and revenue of $77.02 billion. These results would represent year-over-year changes of -7.31% and -3.23%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is currently a Zacks Rank #3 (Hold).
Investors should also note IBM's current valuation metrics, including its Forward P/E ratio of 10.47. For comparison, its industry has an average Forward P/E of 11.06, which means IBM is trading at a discount to the group.
Meanwhile, IBM's PEG ratio is currently 2.09. 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 1.69 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 219, putting it in the bottom 15% 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.
Zacks Investment Research