IBM Stock Dips Slightly; Analysts Weigh In
IBM Stock Sees Slight Dip, Mixed Analyst Sentiment
International Business Machines (IBM) stock closed at $249.98 on the latest trading day, a 0.14% decrease from the previous session. This underperformed the S&P 500's 0.67% gain, the Dow's 0.56% increase, and the Nasdaq's 0.87% rise. Over the past month, IBM shares dipped 1.13%, outperforming the Computer and Technology sector's 7.99% loss and the S&P 500's 5.28% decline.
IBM's upcoming earnings report on April 23, 2025, is a key focus for investors. Analysts forecast an EPS of $1.43, a 14.88% decrease year-over-year, and revenue of $14.44 billion, a 0.18% decline from the prior year's quarter. Full-year projections stand at $10.79 EPS (a 4.45% increase) and $64.84 billion in revenue (a 3.33% increase).
Recent analyst revisions offer further insight into near-term business trends. According to Zacks Investment Research, a higher Zacks Consensus EPS estimate generally correlates with positive near-term stock price movement. Currently, IBM holds a Zacks Rank of #2 (Buy), with its Zacks Consensus EPS estimate having moved 0.04% higher over the past month. However, IBM's Forward P/E ratio of 23.2 is considered premium relative to the industry average of 13.51, and its PEG ratio of 5.49 also exceeds the Computer - Integrated Systems industry average of 1.47. The Computer - Integrated Systems industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 83, placing it in the top 34%.
Analyst ratings on IBM are mixed. Oppenheimer initiated coverage with an "outperform" rating and a $320.00 price target. Goldman Sachs reiterated a "buy" rating, while Erste Group Bank upgraded to a "strong-buy" rating. Wedbush also gave an "outperform" rating. Conversely, JPMorgan Chase & Co. maintained a "neutral" rating, raising its price target to $244.00. MarketBeat.com reports a consensus rating of "Hold" and an average target price of $231.13, with two sell ratings, eight hold ratings, seven buy ratings, and one strong buy rating.
In other news, IBM reported Q4 2024 EPS of $3.92, exceeding analyst estimates of $3.77. The company declared a quarterly dividend of $1.67, and SVP Robert David Thomas recently sold 26,543 shares. Significant institutional investors, including Vanguard Group Inc., State Street Corp, Geode Capital Management LLC, Capital World Investors, and Northern Trust Corp, have recently adjusted their holdings in IBM.
International Business Machines (IBM) stock closed at $249.98 on the latest trading day, a 0.14% decrease from the previous session. This underperformed the S&P 500's 0.67% gain, the Dow's 0.56% increase, and the Nasdaq's 0.87% rise. Over the past month, IBM shares dipped 1.13%, outperforming the Computer and Technology sector's 7.99% loss and the S&P 500's 5.28% decline.
IBM's upcoming earnings report on April 23, 2025, is a key focus for investors. Analysts forecast an EPS of $1.43, a 14.88% decrease year-over-year, and revenue of $14.44 billion, a 0.18% decline from the prior year's quarter. Full-year projections stand at $10.79 EPS (a 4.45% increase) and $64.84 billion in revenue (a 3.33% increase).
Recent analyst revisions offer further insight into near-term business trends. According to Zacks Investment Research, a higher Zacks Consensus EPS estimate generally correlates with positive near-term stock price movement. Currently, IBM holds a Zacks Rank of #2 (Buy), with its Zacks Consensus EPS estimate having moved 0.04% higher over the past month. However, IBM's Forward P/E ratio of 23.2 is considered premium relative to the industry average of 13.51, and its PEG ratio of 5.49 also exceeds the Computer - Integrated Systems industry average of 1.47. The Computer - Integrated Systems industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 83, placing it in the top 34%.
Analyst ratings on IBM are mixed. Oppenheimer initiated coverage with an "outperform" rating and a $320.00 price target. Goldman Sachs reiterated a "buy" rating, while Erste Group Bank upgraded to a "strong-buy" rating. Wedbush also gave an "outperform" rating. Conversely, JPMorgan Chase & Co. maintained a "neutral" rating, raising its price target to $244.00. MarketBeat.com reports a consensus rating of "Hold" and an average target price of $231.13, with two sell ratings, eight hold ratings, seven buy ratings, and one strong buy rating.
In other news, IBM reported Q4 2024 EPS of $3.92, exceeding analyst estimates of $3.77. The company declared a quarterly dividend of $1.67, and SVP Robert David Thomas recently sold 26,543 shares. Significant institutional investors, including Vanguard Group Inc., State Street Corp, Geode Capital Management LLC, Capital World Investors, and Northern Trust Corp, have recently adjusted their holdings in IBM.
