IBM Shows Growth But Trails Market Performance: What You Need to Know

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IBM closed at $167.38 in the latest trading session, up 0.95% from the previous day, falling behind the S&P 500’s 1.19% gain. The Dow Jones rose by 0.25% while the Nasdaq, dominated by tech stocks, saw a 1.96% rise.

Shares of IBM had lost 1.53% over the past month, lagging behind the Computer & Technology sector’s gain of 5.37% and the S&P 500’s gain of 3.35%. Analysts will closely watch IBM’s upcoming earnings report on July 24, 2024, with expected earnings per share (EPS) of $2.17, down 0.46% from the previous year.

The company is estimated to report revenue of $15.58 billion, a 0.67% increase from the same quarter last year. Full-year estimates predict earnings of $9.91 per share and revenue of $63.04 billion, representing increases of +3.01% and +1.91%, respectively.

Investors should keep an eye on any changes in analyst projections for IBM, as they can indicate short-term trends that impact share price performance. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), has a track record of outperformance, with #1 stocks returning an average annual gain of +25% since 1988.

IBM currently holds a Zacks Rank of #3 (Hold) and is trading with a Forward P/E ratio of 16.73, in line with the industry average. The PEG ratio, at 4.08, reflects the stock’s expected earnings growth rate, higher than the industry average of 2.43.

The Computer – Integrated Systems industry, part of the Computer and Technology sector, is ranked #76 on the Zacks Industry Rank, in the top 31% of all industries. Industries in the top 50% have historically outperformed the bottom half by a factor of 2 to 1.

To stay updated on IBM’s performance, visit Zacks.com. For the latest recommendations from Zacks Investment Research, download the 7 best stocks for the next 30 days.

International Business Machines Corporation (IBM) is a leading technology and consulting company. For a free stock analysis report and more information, visit Zacks.com.

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https://finance.yahoo.com/news/ibm-ibm-gains-lags-market-214509328.html