IBM (IBM, $122.59) beats Q3 expectations
IBM posted stronger-than-expected third quarter earnings. Revenues, too, beat expectations.
The software company’s adjusted earnings came in at $1.81 per share for the three months ending in September, topping the Street forecasts by around 3 cents per share.
Revenues rose +6% from the year-ago quarter to $14.1 billion, exceeding the Street consensus forecast of $13.5 billion. Revenues from the software segment climbed +7.5% to $5.8 billion. While Consulting revenues grew +5.4% to $4.7 billion. Revenues from Red Hat (the cloud computing firm that IBM acquired for $34 billion in 2019) increased +12%.
Looking ahead, IBM anticipates a stronger U.S. dollar will erode around 7% of the group's full year earnings. However, the company b still expects to beat its previous forecast of "mid-single-digit growth" on a constant currency basis.
IBM in upward trend: 10-day moving average broke above 50-day moving average on November 29, 2024
The 10-day moving average for IBM crossed bullishly above the 50-day moving average on November 29, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 18, 2024. You may want to consider a long position or call options on IBM as a result. In of 76 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for IBM just turned positive on November 20, 2024. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 40 cases over the following month. The odds of a continued upward trend are .
IBM moved above its 50-day moving average on November 21, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 345 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 273 cases where IBM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for IBM moved out of overbought territory on December 09, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 46 similar instances where the indicator moved out of overbought territory. In of the 46 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
IBM broke above its upper Bollinger Band on November 21, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. IBM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 80, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.881) is normal, around the industry mean (27.932). P/E Ratio (34.220) is within average values for comparable stocks, (49.558). IBM's Projected Growth (PEG Ratio) (7.774) is very high in comparison to the industry average of (1.851). Dividend Yield (0.028) settles around the average of (0.022) among similar stocks. P/S Ratio (3.501) is also within normal values, averaging (34.300).
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a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices