The most recent trading session ended with IBM (IBM) standing at $239.06, reflecting a +1.52% shift from the previouse trading day's closing. The stock exceeded the S&P 500, which registered a gain of 0.79% for the day. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 0.64%.
The technology and consulting company's stock has dropped by 5.18% in the past month, falling short of the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56%.
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. On that day, IBM is projected to report earnings of $1.42 per share, which would represent a year-over-year decline of 15.48%. In the meantime, our current consensus estimate forecasts the revenue to be $14.43 billion, indicating a 0.19% decline compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.73 per share and revenue of $64.7 billion, indicating changes of +3.87% and +3.1%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
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 has moved 0.55% lower. IBM is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 21.95 right now. Its industry sports an average Forward P/E of 11.2, so one might conclude that IBM is trading at a premium comparatively.
Investors should also note that IBM has a PEG ratio of 5.19 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 Computer - Integrated Systems industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 158, this industry ranks in the bottom 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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