IBM (IBM) closed at $312.18 in the latest trading session, marking a +2.62% move from the prior day. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Elsewhere, the Dow gained 0.17%, while the tech-heavy Nasdaq added 0.26%.
The technology and consulting company's shares have seen a decrease of 1.62% over the last month, not keeping up with the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89%.
The upcoming earnings release of IBM will be of great interest to investors. The company's earnings report is expected on January 28, 2026. The company is expected to report EPS of $4.33, up 10.46% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $19.21 billion, up 9.45% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $11.39 per share and a revenue of $67.02 billion, demonstrating changes of +10.26% and 0%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for IBM. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. IBM presently features a Zacks Rank of #2 (Buy).
In terms of valuation, IBM is presently being traded at a Forward P/E ratio of 24.85. This signifies a premium in comparison to the average Forward P/E of 24.02 for its industry.
Investors should also note that IBM has a PEG ratio of 2.82 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 0.92 based on yesterday's closing prices.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 24, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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