IBM (IBM) closed the most recent trading day at $146.48, moving -0.29% from the previous trading session. This move lagged the S&P 500's daily gain of 0.4%. At the same time, the Dow added 0.13%, and the tech-heavy Nasdaq gained 0.45%.
Prior to today's trading, shares of the technology and consulting company had gained 1.07% over the past month. This has outpaced the Computer and Technology sector's loss of 1.45% and the S&P 500's loss of 1.38% in that time.
Investors will be hoping for strength from IBM as it approaches its next earnings release. On that day, IBM is projected to report earnings of $2.13 per share, which would represent year-over-year growth of 17.68%. Our most recent consensus estimate is calling for quarterly revenue of $14.82 billion, up 5.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.43 per share and revenue of $61.49 billion. These totals would mark changes of +3.29% and +1.58%, respectively, from last 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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. IBM is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, IBM currently has a Forward P/E ratio of 15.57. Its industry sports an average Forward P/E of 15.8, so we one might conclude that IBM is trading at a discount comparatively.
We can also see that IBM currently has a PEG ratio of 3.73. 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 2.01 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 168, putting it in the bottom 34% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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