IBM (IBM, $132.72) Surges after Reporting Estimate-Beating Q4 Results
Shares of IBM surged nearly 5% after the company reported Q4 results that beat EPS and revenue estimates, even though revenue was down 3.5% on a y-o-y basis.
Q4's adjusted earnings for IBM stood at $4.87, beating EPS estimates by 3 cents. Sales for the quarter stood at $21.76 billion, approximately $10 million above the consensus estimates.
IBM also issued strong FY2019 earnings guidance and is optimistic it can produce free cash flow of approximately $12 billion, as the Red Hat acquisition is expected to close in the second half of 2019 and full-year guidance will provide more precision to last month's sale of certain software products to HCL Technologies.
Ginni Rometty, IBM Chairman, President and CEO explained that a growing demand for IBM’s services and leadership solutions in hybrid cloud, AI, analytics and security led to the full-year revenue growth. In fact, major clients worldwide, such as BNP Paribas, are now pinning their hopes on IBM as the latter can offer unmatched industry experience that could uplift their business based on innovation.
Cognitive Solutions business reported revenues of $5.46 billion after +2% y-o-y growth (in constant currency) and Global Business Services recorded revenues of $4.32 billion after sustaining a +6% y-o-y growth. But the shinning stars in IBM’s revenue mix were the Cloud business and Strategic Imperatives business, which recorded impressive 12% and 9% y-o-y growth. Strategic imperatives (cloud and data analysis among others) reported revenue of $39.8 billion for 2018.
IBM in upward trend: price may jump up because it broke its lower Bollinger Band on April 10, 2026
IBM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 36 cases where IBM's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 57 cases where IBM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 08, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IBM as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for IBM turned negative on April 24, 2026. 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 36 similar instances when the indicator turned negative. In of the 36 cases the stock turned lower in the days that followed. This puts the odds of success at .
IBM moved below its 50-day moving average on April 23, 2026 date and that indicates a change from an upward trend to a downward trend.
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 .
The Aroon Indicator for IBM entered a downward trend on April 17, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (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 (6.593) is normal, around the industry mean (11.788). P/E Ratio (20.470) is within average values for comparable stocks, (59.883). Projected Growth (PEG Ratio) (2.166) is also within normal values, averaging (1.544). Dividend Yield (0.029) settles around the average of (0.028) among similar stocks. P/S Ratio (3.190) is also within normal values, averaging (9.270).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. IBM’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices
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