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.

Several price targets were given for IBM by the analysts covering the stock. The highest price target was 200, which equates to a potential upside of 38.2 percent. The minimum price target given was 110, implying potential capital losses of -23.99 percent. It is crucial to not blindly accept any price targets or stock ratings, because many analysts have it in their best interest to give positive coverage of certain stocks.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change 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. Meanwhile, fiscal year estimates have been revised upwards by 0.4 percent, compared to last month. Expanding the time horizon to 3 months, the average change in fiscal year estimates becomes 0.29 percent.

Another thing investors often look at is the level of agreement among analysts' revisions. 2 analysts have revised their quarterly estimates upwards in the past 30 days, while 5 analysts made negative revisions. During this time, 5 analysts made positive revisions in their estimates for this fiscal year's 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. The PEG ratio of a stock is another value frequently studied by investors. Smaller PEG ratios are desirable, as that can indicate whether the high price level of a stock is warranted by high growth. PEG ratios below 1 are often considered desirable, 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.

In the trailing 52-weeks, IBM hit 182.79 at the highest peak, while it's lowest trading point was 143.64. Currently the stock is 0.75 percent higher than its low, and 20.83 percent lower than its 52-week high. IBM has a price/earnings 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 is estimated to release their earnings results for the quarter on 0000-00-00, days from today.