IBM (IBM) stock declines as market gains: What you should know



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In the last trading session, IBM (IBM) closed at $ 131.49, marking a -0.9% increase over the previous day. This change was lower than the daily gain of 0.82% for the S & P 500. At the same time, the Dow Jones added 0.82%, and the Nasdaq, a technology giant, gained 0.64% .

Prior to today 's trading, the shares of technology consulting firm had lost 3.6% over the past month. This loss was lower than the 8.68% loss in the IT and Technology sector and the 4.58% loss of the S & P 500 during this period.

Wall Street will look for IBM's positivity as the next publication date of its results approaches. The company is expected to generate EPS of $ 3.06, down 0.65% from the same quarter last year. At the same time, our latest consensus estimates are $ 19.11 billion in sales, down 4.45% from the same quarter last year.

Consensus estimates of Zacks, released by IBM throughout the year, expect earnings of $ 13.89 per share and revenues of $ 76.82 billion. These results would represent year-on-year variations of + 0.58% and -3.49%, respectively.

It is also important to note the recent changes made to analyst estimates for IBM. These revisions generally reflect the latest short-term business trends, which can change frequently. Thus, positive estimates revisions reflect analysts' optimism about the company's operations and profitability.

Research indicates that these revisions of estimates are directly correlated to short-term stock price dynamics. To take advantage of this, we have developed the Zacks Rank, an exclusive model that takes into account these changes in estimates and provides a usable scoring system.

The Zacks filing system ranges from # 1 (strong buy) to # 5 (strong sell). It displays outstanding success, unverified, with No. 1 stock offering an average annual return of + 25% since 1988. The Zacks Consensus EPS estimate remained stagnant last month. IBM currently holds rank 3 of Zacks (pending).

In terms of valuation, IBM is currently trading at a P / E ratio of 9.56. This represents a discount to the industry average of 11.24 PER (Forward Forward).

Investors should also note that IBM has a PEG ratio of 2.41 at the moment. The PEG ratio is similar to the widely used P / E ratio, but this indicator also takes into account the expected earnings growth rate of the company. Computer – Integrated Systems had an average PEG ratio of 2.41 at the closing price yesterday.

The IT – Integrated Systems sector is part of the IT and Technology sector. This group has a ranking of 191 on the Zacks industry, which places it in the bottom 26% of more than 250 industries.

The Zacks industry ranking is ranked from best to worst in terms of Zacks' average ranking of individual companies in each of these sectors. Our research shows that the 50% of the top rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all these measures, and much more, on Zacks.com.

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International Business Machines Corporation (IBM): free stock analysis report
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International Business Machines Corporation (IBM): free stock analysis report

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