Analyst Ratings for International Business Machines Corp. (IBM)Updated: 2017-07-27
Shares of International Business Machines Corp. (NYSE:IBM) have received a consensus rating of Hold from Wall Street analysts. IBM had previously received a consensus rating of Hold a month ago.
28 analysts issued ratings on the stock, where 7 gave IBM a buy rating, 1 gave an overweight rating, 15 issued a hold rating, 0 gave an underweight rating, and 5 issued a sell rating. Today, there are 2 more analysts optimistic about the company future as compared with 90 days ago. Over the same time period, there has been an increase of 0 in the number of analysts with a negative outlook on the stock.
Many analysts weighed in on price targets for IBM. The most optimistic price target was 200, implying potential capital gains of 38.2 percent. The lowest price target was 110, implying potential capital losses of -23.99 percent. It is advisable to not rely only on price targets or ratings, as these can be biased for some stocks.
In the last 30 days, analysts have changed their quarterly earnings estimates downwards by an average of -2.22 percent. That number becomes -2.37 percent if we expand the time horizon to include the past 3 months instead of just one. On the other hand, earnings estimates for the fiscal year have been revised upwards by 0.4 percent, as compared to a month ago. If we look at the last 90 days instead, we find a net average change of 0.29 percent in FY estimates.
Another thing investors often look at is the level of agreement among analysts' revisions. 2 analysts made positive revisions to their quarterly estimates over the past month, while 5 analysts revised their estimates downwards. Also over the last month, 5 analysts increased their estimates for the FY earnings, compared to 2 analysts that revised their FY estimates downwards.
Analysts estimate earnings of IBM to grow at a rate of 13.87 percent. People on Wall Street often look at a company's PEG ratio. A lower PEG ratio is favorable, because that is often interpreted as the company being fairly priced relative to its growth rate. Wall Street investors typically prefer a PEG ratio to be smaller than 1, though it could be better to see where the ratio stands relative to peers in the industry. IBM has a PEG ratio of 0.86.
IBM has a 52-week high of 182.79 and a 52-week low of 143.64. The current market price is above the trailing year's low by 0.75 percent, and below the high by 20.83 percent. IBM has a P/E ratio of 11.99. Investors typically compare the P/E ratio to a company's peers in the industry. The IBM value stock report compares IBM to some of its peers using value stock charts. The stock has a market capitalization of $135.47 billion. IBM will post this quarters earnings in days, on 0000-00-00.