In the latest close session, IBM (IBM) was up +1.54% at $293.87. The stock's change was more than the S&P 500's daily loss of 0.38%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 0.67%.
Heading into today, shares of the technology and consulting company had gained 13.02% over the past month, outpacing the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The upcoming earnings release of IBM will be of great interest to investors. The company's earnings report is expected on October 22, 2025. On that day, IBM is projected to report earnings of $2.43 per share, which would represent year-over-year growth of 5.65%. Our most recent consensus estimate is calling for quarterly revenue of $16.08 billion, up 7.44% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $11.12 per share and a revenue of $66.76 billion, indicating changes of +7.65% and +6.39%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term 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.
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 0.02% higher. Right now, IBM possesses a Zacks Rank of #2 (Buy).
Looking at valuation, IBM is presently trading at a Forward P/E ratio of 26.02. This represents a premium compared to its industry average Forward P/E of 24.55.
We can additionally observe that IBM currently boasts a PEG ratio of 4.46. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 2.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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
