IBM (IBM) closed the latest trading day at $249.98, indicating a -0.14% change from the previous session's end. The stock's change was less than the S&P 500's daily gain of 0.67%. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.87%.
Shares of the technology and consulting company witnessed a loss of 1.13% over the previous month, beating the performance of the Computer and Technology sector with its loss of 7.99% and the S&P 500's loss of 5.28%.
Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on April 23, 2025. The company is forecasted to report an EPS of $1.43, showcasing a 14.88% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $14.44 billion, down 0.18% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.79 per share and a revenue of $64.84 billion, demonstrating changes of +4.45% and +3.33%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for IBM. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Currently, IBM is carrying a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 23.2 right now. This denotes a premium relative to the industry's average Forward P/E of 13.51.
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. The Computer - Integrated Systems was holding an average PEG ratio of 1.47 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 83, positioning it in the top 34% 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.
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International Business Machines Corporation (IBM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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