IBM (IBM) Gains As Market Dips: What You Should Know

In the latest trading session, IBM (IBM - Free Report) concluded at $223.96, marking a +0.58% change from the previous closing price. This performance is notable, especially as it outperformed the S&P 500 index, which experienced a decline of 1.11% on the same day. Additionally, the Dow Jones fell by 0.42%, while the tech-oriented Nasdaq index saw a steeper drop of 1.89%.

Over the past month leading up to today, shares of IBM had seen a loss of 3.19%. During this same period, the broader Computer and Technology sector had fared slightly better, gaining 1.83%, while the S&P 500 recorded a loss of 1.7%.

Looking ahead, there's significant interest within the investment community regarding IBM’s upcoming quarterly earnings report, which is set to be released on January 29, 2025. Analysts are forecasting that the company will report earnings per share (EPS) of $3.74, reflecting a decrease of 3.36% compared to the same quarter last year. In terms of revenue, predictions are positioned at $17.6 billion, which indicates a 1.25% increase from the same quarter in the previous year.

Investors should keep an eye on any recent changes in analysts' outlooks for IBM. Adjustments to forecasts are often seen as indicators of shifts in business conditions. Positive revisions can signal an improved outlook for the company, which can be beneficial for stock performance.

According to research, these revisions are crucial and can greatly influence near-term stock movements. Our analysis employs the Zacks Rank, a quantitative model that incorporates estimate changes, providing a reliable rating system for stocks.

The Zacks Rank is classified from #1 (Strong Buy) to #5 (Strong Sell) and has demonstrated an impressive ability to exceed performance expectations. Stocks rated #1 have delivered an average annual return of +25% since 1988. Presently, IBM holds a Zacks Rank of #2 (Buy), suggesting a favorable outlook.

On the valuation front, IBM trades at a Forward P/E ratio of 20.98, which is above the average Forward P/E of 17.73 for its industry.

Moreover, IBM has a PEG ratio of 4.77 at this time. This metric is akin to the widely used P/E ratio but also takes into account anticipated earnings growth. The average PEG ratio for the Computer - Integrated Systems industry was 1.87 at the close of trading yesterday.

The Computer - Integrated Systems industry is part of the broader Computer and Technology sector and currently holds a Zacks Industry Rank of 38, placing it within the top 16% of more than 250 industries analyzed.

The Zacks Industry Rank is based on the average Zacks Rank of each company within these sectors. Historical data reveal that industries in the top half consistently outperform those in the bottom half, with a margin of 2 to 1.

As the market evolves, it is essential to utilize resources such as Zacks.com to stay informed on stock-updating metrics and the factors influencing future trading sessions.

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