IBM Gains 1.95% to $250, Forecasts 11.3% Q1 EPS Growth
IBM shares closed at $250.06 after a 1.95% gain, outpacing the S&P 500, though the stock has fallen 16.66% in the past month versus a 3.59% sector decline. Q1 forecasts call for EPS of $1.78 (+11.3% YoY) on $15.56B revenue (+7.0%), with a 19.8x forward P/E.
1. Stock Performance
IBM stock closed at $250.06, marking a 1.95% daily gain that outpaced the S&P 500’s 0.78% rise. Despite this uptick, shares have dropped 16.66% over the last month, significantly underperforming the Computer sector’s 3.59% loss.
2. Earnings Estimates
Analysts project Q1 earnings per share of $1.78, representing an 11.3% year-over-year increase, on revenues of $15.56 billion, up 7.0% from the same period a year ago. Full-year consensus calls for $12.37 EPS and $71.25 billion revenue, gains of 6.7% and 5.5%, respectively.
3. Valuation Metrics
IBM trades at a 19.8x forward P/E, below the 20.5x industry average, suggesting a modest valuation discount. Its PEG ratio stands at 2.46 versus the sector’s 0.74, while the Computer Integrated Systems industry ranks in the top 9% by average analyst ratings.