IBM (IBM) closed at $294.97 in the latest trading session, marking a +1.19% move from the prior day. The stock's performance was ahead of the S&P 500's daily gain of 0.64%. Elsewhere, the Dow gained 1.23%, while the tech-heavy Nasdaq added 0.69%.
The technology and consulting company's shares have seen a decrease of 5.34% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Market participants will be closely following the financial results of IBM in its upcoming release. The company plans to announce its earnings on January 28, 2026. The company's upcoming EPS is projected at $4.33, signifying a 10.46% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $19.21 billion, indicating a 9.45% increase compared to the same quarter of the previous year.
IBM's full-year Zacks Consensus Estimates are calling for earnings of $11.39 per share and revenue of $67.02 billion. These results would represent year-over-year changes of +10.26% and 0%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for IBM. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. IBM is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 23.81. This signifies a premium in comparison to the average Forward P/E of 21.6 for its industry.
Meanwhile, IBM's PEG ratio is currently 2.7. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Integrated Systems industry currently had an average PEG ratio of 0.85 as of yesterday's close.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 18, placing it within the top 8% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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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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