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IBM (IBM) Gains But Lags Market: What You Should Know
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IBM (IBM - Free Report) ended the recent trading session at $227.41, demonstrating a +0.22% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.56%. On the other hand, the Dow registered a gain of 0.42%, and the technology-centric Nasdaq increased by 0.83%.
The the stock of technology and consulting company has risen by 9.77% in the past month, leading the Computer and Technology sector's gain of 0.44% and the S&P 500's gain of 3.11%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company's earnings per share (EPS) are projected to be $3.76, reflecting a 2.84% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.61 billion, up 1.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.12 per share and a revenue of $62.81 billion, demonstrating changes of +5.2% and +1.53%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. At present, IBM boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 22.42 right now. This expresses a premium compared to the average Forward P/E of 14.45 of its industry.
Meanwhile, IBM's PEG ratio is currently 5.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.84.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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IBM (IBM) Gains But Lags Market: What You Should Know
IBM (IBM - Free Report) ended the recent trading session at $227.41, demonstrating a +0.22% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.56%. On the other hand, the Dow registered a gain of 0.42%, and the technology-centric Nasdaq increased by 0.83%.
The the stock of technology and consulting company has risen by 9.77% in the past month, leading the Computer and Technology sector's gain of 0.44% and the S&P 500's gain of 3.11%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company's earnings per share (EPS) are projected to be $3.76, reflecting a 2.84% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $17.61 billion, up 1.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.12 per share and a revenue of $62.81 billion, demonstrating changes of +5.2% and +1.53%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for IBM. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.08% higher. At present, IBM boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 22.42 right now. This expresses a premium compared to the average Forward P/E of 14.45 of its industry.
Meanwhile, IBM's PEG ratio is currently 5.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.84.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 77, this industry ranks in the top 31% of all industries, numbering over 250.
The Zacks Industry Rank is ordered 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.