Yahoo Finance IBM (IBM) Ascends While Market Falls: Some Facts to Note
IBM (IBM) closed the most recent trading day at $204.11, moving +1.41% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.16%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq decreased by 0.3%.
The technology and consulting company's shares have seen an increase of 7.75% over the last month, surpassing the Computer and Technology sector's gain of 1.63% and the S&P 500's gain of 3.64%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company is forecasted to report an EPS of $2.25, showcasing a 2.27% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $15.12 billion, up 2.5% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $10.10 per share and revenue of $63.25 billion, which would represent changes of +4.99% and +2.25%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for IBM. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.39% upward. As of now, IBM holds a Zacks Rank of #3 (Hold).
From a valuation perspective, IBM is currently exchanging hands at a Forward P/E ratio of 19.92. For comparison, its industry has an average Forward P/E of 15.62, which means IBM is trading at a premium to the group.
Also, we should mention that IBM has a PEG ratio of 4.48. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Integrated Systems was holding an average PEG ratio of 3.79 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 176, putting it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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International Business Machines Corporation (IBM) : Free Stock Analysis Report
