IBM (IBM) Rises Higher Than Market: Key Facts

In the latest close session, IBM (IBM) was up +1.75% at $294.78. This move outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow gained 0.63%, while the tech-heavy Nasdaq added 0.48%.

The technology and consulting company's stock has climbed by 11.83% in the past month, exceeding the Computer and Technology sector's gain of 7.56% and the S&P 500's gain of 4.27%.

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Investors will be eagerly watching for the performance of IBM in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 23, 2025. In that report, analysts expect IBM to post earnings of $2.64 per share. This would mark year-over-year growth of 8.64%. At the same time, our most recent consensus estimate is projecting a revenue of $16.59 billion, reflecting a 5.2% rise from the equivalent quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $10.95 per share and a revenue of $66.21 billion, demonstrating changes of +6% and +5.5%, respectively, from the preceding year.

Any recent changes to analyst estimates for IBM should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, IBM possesses a Zacks Rank of #3 (Hold).

Looking at its valuation, IBM is holding a Forward P/E ratio of 26.46. This indicates a premium in contrast to its industry's Forward P/E of 19.99.

Investors should also note that IBM has a PEG ratio of 6.08 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computer - Integrated Systems industry had an average PEG ratio of 4.15.

The Computer - Integrated Systems industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 54, which puts it in the top 22% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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