IBM (IBM) Stock Moves -0.16%: What You Should Know

In the latest market close, IBM (IBM) reached $228.97, with a -0.16% movement compared to the previous day. This change was narrower than the S&P 500's 0.39% loss on the day. Elsewhere, the Dow saw a downswing of 0.61%, while the tech-heavy Nasdaq depreciated by 0.32%.

Coming into today, shares of the technology and consulting company had gained 10.21% in the past month. In that same time, the Computer and Technology sector gained 7.63%, while the S&P 500 gained 3.6%.

Analysts and investors alike will be keeping a close eye on the performance of IBM in its upcoming earnings disclosure. The company is expected to report EPS of $3.74, down 3.36% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.6 billion, indicating a 1.26% growth compared to the corresponding quarter of the prior year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $10.12 per share and revenue of $62.8 billion, which would represent changes of +5.2% and +1.52%, respectively, from the prior year.

Any recent changes to analyst estimates for IBM should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Currently, IBM is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, IBM is currently being traded at a Forward P/E ratio of 22.66. This indicates a premium in contrast to its industry's Forward P/E of 15.53.

We can additionally observe that IBM currently boasts a PEG ratio of 5.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer - Integrated Systems stocks are, on average, holding a PEG ratio of 1.79 based on yesterday's closing prices.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 85, positioning it in the top 34% of all 250+ industries.