In yesterday’s trading session, IBM (NYSE:IBM) concluded at $161.14, marking a positive move of +1.24% from the previous day. However, the stock fell short of the S&P 500, which recorded a daily gain of 1.41%. In comparison, the Dow experienced a rise of 0.58%, and the technology-centric Nasdaq saw a more significant increase of 2.2%.
Over the past month, the stock of this technology and consulting company has declined by 1.73%, trailing the Computer and Technology sector’s gain of 1.37% and the S&P 500’s increase of 2.9%.
Investors are eagerly anticipating IBM’s upcoming financial results. The projected EPS for the company stands at $3.73, indicating a 3.61% increase compared to the same quarter in the previous year. The latest consensus estimate forecasts revenue of $17.06 billion, reflecting a 2.21% rise from the equivalent quarter last year.
Recent changes to analyst estimates for IBM may capture the attention of investors, as these revisions often reflect the evolving nature of short-term business trends. Upward revisions in estimates convey analysts’ optimism about the company’s business operations and profit-generating capabilities.
According to our research, these estimate revisions are directly linked to near-term stock movements. To capitalize on this, we utilize the Zacks Rank, an exclusive model that considers these estimated changes and provides an operational rating system. In terms of valuation, IBM is currently trading at a Forward P/E ratio of 16.28, representing a discount compared to the industry’s average Forward P/E of 16.73. Additionally, the company has a PEG ratio of 4.19, a metric similar to the well-known P/E ratio but accounting for the expected earnings growth rate. Comparatively, the Computer-computer-integrated systems industry had an average PEG ratio of 2.74 by the end of the latest trading session.
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