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IBM (IBM, $131.51) downgraded at UBS
IBM shares were downgraded to sell from neutral by a UBS analyst.
Analyst David Vogt also cut his price target on the tech company’s shares to $124 from $136. Vogt mentioned in a research note that near-term risk to fourth-quarter operating estimates and an "elevated valuation" implies that the shares are "vulnerable" over the next 12 months.
Vogt said that IBM is trading at over three turns above its trailing three and five-year averages. According to the analyst, the shares are also pricing in 2022 and 2023 earnings estimates that are 10% higher than his forecast.
IBM in upward trend: price rose above 50-day moving average on April 19, 2022
IBM moved above its 50-day Moving Average on April 19, 2022 date and that indicates a change from a downward trend to an upward trend. In 26 of 41 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are 63%.
Current price $135.21 crossed the resistance line at $135.12 and is trading between $139.53 resistance and $135.12 resistance lines. Throughout the month of 04/13/22 - 05/16/22, the price experienced a +8% Uptrend. During the week of 05/09/22 - 05/16/22, the stock enjoyed a +0.57% Uptrend growth.
The Momentum Indicator moved above the 0 level on May 13, 2022. You may want to consider a long position or call options on IBM as a result. In 48 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 60%.
The 10-day Moving Average for IBM crossed bullishly above the 50-day moving average on April 20, 2022. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 17 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 53%.
Following a +1.74% 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in 169 of 318 cases, the price rose further within the following month. The odds of a continued upward trend are 53%.
The Aroon Indicator entered an Uptrend today. In 127 of 259 cases where IBM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 49%.
The 10-day RSI Indicator for IBM moved out of overbought territory on April 26, 2022. 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 30 similar instances where the indicator moved out of overbought territory. In 14 of the 30 cases, the stock moved lower in the following days. This puts the odds of a move lower at 47%.
The Stochastic Indicator may be shifting from an upward trend to a downward trend. In 33 of 64 cases where IBM's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 52%.
The Moving Average Convergence Divergence Histogram (MACD) for IBM turned negative on May 10, 2022. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In 23 of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at 52%.
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 50 of 62 cases within the following month. The odds of a continued downward trend are 43%.
IBM broke above its upper Bollinger Band on April 20, 2022. 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.
Tickeron has a positive outlook on this ticker and predicts a further increase by more than 4.00% within the next month with a likelihood of 68%. During the last month, the daily ratio of advancing to declining volumes was 1.67 to 1.
The Tickeron Valuation Rating of 4 (best 1 - 100 worst) indicates that the company is seriously undervalued 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 (6.309) is normal, around the industry mean (12.783). P/E Ratio (24.331) is within average values for comparable stocks, (75.636). Projected Growth (PEG Ratio) (1.480) is also within normal values, averaging (1.257). IBM has a moderately high Dividend Yield (0.049) as compared to the industry average of (0.022). P/S Ratio (2.075) is also within normal values, averaging (6.382).
The Tickeron PE Growth Rating for this company is 25 (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 Price Growth Rating for this company is 29 (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 Seasonality Score of 50 (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 Profit vs. Risk Rating rating for this company is 62 (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock slightly better than average.
The Tickeron SMR rating for this company is 100 (best 1 - 100 worst), indicating weak sales and an unprofitable 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 industry, whose total market cap runs into trillions, makes hardware/software that allows data to be stored, retrieved, transmitted, and manipulated on computers. With the ever-increasing relevance of data, the information technology (IT) industry has gained momentous growth over the years, and continues to thrive on innovation. Some of the behemoths in the industry are International Business Machines Corporation, Accenture, and VMware, Inc.
The average market capitalization across the Information Technology Services Industry is 6.4B. The market cap for tickers in the group ranges from 0 to 181.6B. ACN holds the highest valuation in this group at 181.6B. The lowest valued company is ARSC at 0.
The average weekly price growth across all stocks in the Information Technology Services Industry was -0.32%. For the same Industry, the average monthly price growth was -11.09%, and the average quarterly price growth was 10.02%. DTST experienced the highest price growth at 61.21%, while SFWJ experienced the biggest fall at -48.72%.
- 4/22/22 6:39 AM: International Business Machines (IBM, $139.85) was a top weekly gainer, with a +10.5% jump
- 2/24/22 5:55 AM: International Business Machines (IBM, $122.07) was a top loser this week, declining -5.5%
- 2/17/22 6:24 AM: International Business Machines (IBM, $129.18) was a top loser this week, declining -5.12%
The average weekly volume growth across all stocks in the Information Technology Services Industry was 16.06%. For the same stocks of the Industry, the average monthly volume growth was 43.84% and the average quarterly volume growth was -25.06%
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Stocks in the group have a Negative Outlook today, backed by the TrendWeek Indicator. Tickeron has a negative outlook on this group and predicts a further decline by more than 4.00% within the next month with a likelihood of 43%. During the last month, the daily ratio of advancing to declining volumes was 1.02 to 1.
73 stocks in the group of tickers exhibit a similar negative trend based on the Aroon indicator with an average likelihood of 72%.
The most notable companies in this group are Accenture PLC (NYSE:ACN), International Business Machines Corp (NYSE:IBM), Xerox Holdings Corp (NASDAQ:XRX), Unisys Corp (NYSE:UIS).
The average market capitalization across the group is 8.3B. The market cap for tickers in the group ranges from 11.7K to 181.6B. ACN holds the highest valuation in this group at 181.6B. The lowest valued company is ONOV at 11.7K.
The average weekly price growth across all stocks in the group was 0.41%. For the same group, the average monthly price growth was -14.18%, and the average quarterly price growth was -28.97%. DTST experienced the highest price growth at 61.21%, while BLFDF experienced the biggest fall at -40.67%.
- 5/14/22 4:23 AM: C3ai (AI, $17.78) was a top weekly gainer, with a +9.82% jump
- 5/14/22 4:23 AM: GDS Holdings (GDS, $29.47) was a top weekly gainer, with a +6.24% jump
- 5/14/22 4:23 AM: Genpact (G, $43.06) was a top weekly gainer, with a +6.22% jump
The average weekly volume growth across all stocks in the group was 361.72%. For the same stocks of the group, the average monthly volume growth was 664.59% and the average quarterly volume growth was 155.25%
- 5/14/22 4:16 AM: The volume for Switch stock increased for two consecutive days, resulting in a record-breaking daily growth of 281% of the 65-Day Volume Moving Average
- 5/14/22 4:16 AM: The volume for Genpact stock increased for a consecutive 5 days, with an average daily gain of 112%
- 5/13/22 4:50 AM: The volume for Switch stock increased for one day, resulting in a record-breaking daily growth of 359% of the 65-Day Volume Moving Average
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
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