IBM Stock Dips Slightly; Analysts Weigh In
IBM Stock Sees Slight Dip, Mixed Analyst Sentiment Persists
International Business Machines Corporation (IBM) stock closed at $249.98 on the latest trading day, a slight 0.14% decrease from the previous session. This performance lagged behind 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 experienced a 1.13% loss, outperforming the Computer and Technology sector's 7.99% decline and the S&P 500's 5.28% drop.
Investors are anticipating IBM's upcoming earnings report on April 23, 2025. Analysts forecast earnings per share (EPS) of $1.43, a 14.88% decrease year-over-year, and revenue of $14.44 billion, a 0.18% decrease from the same period last year. Full-year projections stand at $10.79 EPS (a 4.45% increase year-over-year) and $64.84 billion in revenue (a 3.33% increase). Recent revisions to analyst forecasts could indicate shifting near-term business trends; upward revisions suggest positive sentiment. One model, the Zacks Rank, incorporates these estimate changes and currently rates IBM as a #2 (Buy), with a consensus EPS estimate that has moved 0.04% higher over the past month.
However, valuation metrics present a mixed picture. IBM holds a Forward P/E ratio of 23.2, exceeding the industry average of 13.51. Its PEG ratio stands at 5.49, compared to 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% of all 250+ industries.
Analyst opinions on IBM are varied. While some firms, including Oppenheimer and Wedbush, have issued "outperform" ratings and set price targets as high as $320.00, others maintain a more cautious stance. Goldman Sachs reiterated a "buy" rating, Erste Group Bank upgraded IBM to a "strong-buy," and JPMorgan Chase & Co. raised its price target to $244.00 but maintained a "neutral" rating. Currently, the consensus rating from MarketBeat.com is "Hold," with an average target price of $231.13. Two analysts rate the stock as a sell, eight as a hold, seven as a buy, and one as a strong buy. Despite the recent dip, some analysts remain positive about the company's future prospects.
International Business Machines Corporation (IBM) stock closed at $249.98 on the latest trading day, a slight 0.14% decrease from the previous session. This performance lagged behind 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 experienced a 1.13% loss, outperforming the Computer and Technology sector's 7.99% decline and the S&P 500's 5.28% drop.
Investors are anticipating IBM's upcoming earnings report on April 23, 2025. Analysts forecast earnings per share (EPS) of $1.43, a 14.88% decrease year-over-year, and revenue of $14.44 billion, a 0.18% decrease from the same period last year. Full-year projections stand at $10.79 EPS (a 4.45% increase year-over-year) and $64.84 billion in revenue (a 3.33% increase). Recent revisions to analyst forecasts could indicate shifting near-term business trends; upward revisions suggest positive sentiment. One model, the Zacks Rank, incorporates these estimate changes and currently rates IBM as a #2 (Buy), with a consensus EPS estimate that has moved 0.04% higher over the past month.
However, valuation metrics present a mixed picture. IBM holds a Forward P/E ratio of 23.2, exceeding the industry average of 13.51. Its PEG ratio stands at 5.49, compared to 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% of all 250+ industries.
Analyst opinions on IBM are varied. While some firms, including Oppenheimer and Wedbush, have issued "outperform" ratings and set price targets as high as $320.00, others maintain a more cautious stance. Goldman Sachs reiterated a "buy" rating, Erste Group Bank upgraded IBM to a "strong-buy," and JPMorgan Chase & Co. raised its price target to $244.00 but maintained a "neutral" rating. Currently, the consensus rating from MarketBeat.com is "Hold," with an average target price of $231.13. Two analysts rate the stock as a sell, eight as a hold, seven as a buy, and one as a strong buy. Despite the recent dip, some analysts remain positive about the company's future prospects.
