IBM (IBM) ended the recent trading session at $281.83, demonstrating a +1.66% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.94% for the day. Elsewhere, the Dow saw an upswing of 0.75%, while the tech-heavy Nasdaq appreciated by 1.52%.
The technology and consulting company's stock has climbed by 3.92% in the past month, exceeding the Computer and Technology sector's gain of 3.9% and the S&P 500's gain of 1.67%.
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 July 23, 2025. The company is expected to report EPS of $2.64, up 8.64% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $16.59 billion, showing a 5.2% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $10.95 per share and a revenue of $66.21 billion, demonstrating changes of +6% and +5.5%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to 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 exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 remained stagnant. Currently, IBM is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, IBM is holding a Forward P/E ratio of 25.32. For comparison, its industry has an average Forward P/E of 18.15, which means IBM is trading at a premium to the group.
It's also important to note that IBM currently trades at a PEG ratio of 5.82. 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 1.75 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 54, finds itself in the top 22% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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