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.

Investment analysts gave a few price targets for IBM. The maximum price target given was 200, implying a possible profit of 38.2 percent. The lowest price target was 110, which equates to a potential downside of -23.99 percent. It is advisable to not rely only on price targets or ratings, as these can be biased for some stocks.

Over the past month, analysts have revised their estimates for this quarter's earnings, with a net average change of -2.22 percent. This can be compared with the average change in earnings estimates over the past 3 months, which is -2.37 percent. Meanwhile, fiscal year estimates have been revised upwards by 0.4 percent, compared to last month. 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. Over the past month, 2 analysts increased their quarterly estimates, while 5 analysts revised their estimates downwards. Over the same time period, 5 analysts revised their FY earnings estimates upwards, while 2 analysts made negative revisions to their fiscal year's estimates.

IBM has an estimated earnings growth rate of 13.87 percent as forecasted by analysts. It's possible to gain additional insight about growth valuation of a company by looking at the PEG ratio. A lower PEG ratio is favorable, as that can indicate whether the high price level of a stock is warranted by high growth. Many investors consider PEG ratios between 0 and 1 as preferrable, but many choose to perform ratio comparisons with other companies in the industry. The PEG ratio of IBM is 0.86.

In the trailing 52-weeks, IBM hit 182.79 at the highest peak, while it's lowest trading point was 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 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.