IBM (IBM) ended the recent trading session at $246.21, demonstrating a -1.65% swing from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow saw a downswing of 0.37%, while the tech-heavy Nasdaq depreciated by 0.53%.
The technology and consulting company's shares have seen a decrease of 2.15% over the last month, surpassing the Computer and Technology sector's loss of 7.14% and the S&P 500's loss of 4.03%.
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 April 23, 2025. The company's earnings per share (EPS) are projected to be $1.43, reflecting a 14.88% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $14.44 billion, indicating a 0.18% decline compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $10.79 per share and a revenue of $64.85 billion, demonstrating changes of +4.45% and +3.34%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 shifted 0.11% upward. IBM presently features a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 23.21 right now. For comparison, its industry has an average Forward P/E of 13.95, which means IBM is trading at a premium to the group.
Also, we should mention that IBM has a PEG ratio of 5.49. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.51 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 78, placing it within the top 32% of over 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
