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IBM (IBM) Gains As Market Dips: What You Should Know
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The most recent trading session ended with IBM (IBM - Free Report) standing at $223.96, reflecting a +0.58% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Coming into today, shares of the technology and consulting company had lost 3.19% in the past month. In that same time, the Computer and Technology sector gained 1.83%, while the S&P 500 lost 1.7%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. The company is scheduled to release its earnings on January 29, 2025. The company is forecasted to report an EPS of $3.74, showcasing a 3.36% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $17.6 billion, reflecting a 1.25% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for IBM. Such recent modifications usually signify the changing landscape 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 20.98. This expresses a premium compared to the average Forward P/E of 17.73 of its industry.
Investors should also note that IBM has a PEG ratio of 4.77 right now. 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. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.87 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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IBM (IBM) Gains As Market Dips: What You Should Know
The most recent trading session ended with IBM (IBM - Free Report) standing at $223.96, reflecting a +0.58% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a loss of 1.11% for the day. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.
Coming into today, shares of the technology and consulting company had lost 3.19% in the past month. In that same time, the Computer and Technology sector gained 1.83%, while the S&P 500 lost 1.7%.
The investment community will be closely monitoring the performance of IBM in its forthcoming earnings report. The company is scheduled to release its earnings on January 29, 2025. The company is forecasted to report an EPS of $3.74, showcasing a 3.36% downward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $17.6 billion, reflecting a 1.25% rise from the equivalent quarter last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for IBM. Such recent modifications usually signify the changing landscape 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. IBM is currently sporting a Zacks Rank of #2 (Buy).
In terms of valuation, IBM is currently trading at a Forward P/E ratio of 20.98. This expresses a premium compared to the average Forward P/E of 17.73 of its industry.
Investors should also note that IBM has a PEG ratio of 4.77 right now. 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. The average PEG ratio for the Computer - Integrated Systems industry stood at 1.87 at the close of the market yesterday.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 38, putting it in the top 16% of all 250+ industries.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.