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IBM (IBM) Stock Moves -0.55%: What You Should Know

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IBM (IBM - Free Report) closed the most recent trading day at $142.43, moving -0.55% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.69%.

Coming into today, shares of the technology and consulting company had gained 4.52% in the past month. In that same time, the Computer and Technology sector lost 5.77%, while the S&P 500 lost 2.58%.

IBM will be looking to display strength as it nears its next earnings release. On that day, IBM is projected to report earnings of $2.49 per share, which would represent a year-over-year decline of 3.49%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $17.76 billion, up 1.13% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $10.81 per share and revenue of $74.97 billion, which would represent changes of +24.68% and +1.83%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for IBM. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.08% lower. IBM currently has a Zacks Rank of #4 (Sell).

Looking at its valuation, IBM is holding a Forward P/E ratio of 13.25. This valuation marks a discount compared to its industry's average Forward P/E of 19.55.

Investors should also note that IBM has a PEG ratio of 1.63 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. IBM's industry had an average PEG ratio of 1.59 as of yesterday's close.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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