Yahoo Finance IBM (IBM) Stock Moves 0.46%: What You Should Know
IBM (IBM) closed the most recent trading day at $129.48, moving +0.46% from the previous trading session. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Prior to today's trading, shares of the technology and consulting company had gained 2.22% over the past month. This has lagged the Computer and Technology sector's gain of 9.73% and outpaced the S&P 500's gain of 1.03% in that time.
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 $1.98 per share, which would represent a year-over-year decline of 14.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $15.49 billion, down 0.28% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $9.30 per share and revenue of $61.88 billion, which would represent changes of +1.86% and +2.23%, respectively, from the prior year.
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. 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.
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. The Zacks Consensus EPS estimate has moved 0.11% higher within the past month. IBM is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 13.85 right now. This represents a discount compared to its industry's average Forward P/E of 15.94.
It is also worth noting that IBM currently has a PEG ratio of 3.4. 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 industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 33% 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.
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
