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 +4.56% Uptrend, rising for three consecutive days on June 24, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where IBM advanced for three days, in of 358 cases, the price rose further within 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 June 05, 2025. You may want to consider a long position or call options on IBM as a result. In of 82 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 June 09, 2025. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 35 cases over the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 281 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 June 27, 2025. 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 48 similar instances where the indicator moved out of overbought territory. In of the 48 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 16 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 June 09, 2025. 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 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 81, 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 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 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 (10.020) is normal, around the industry mean (17.540). P/E Ratio (49.521) is within average values for comparable stocks, (50.948). Projected Growth (PEG Ratio) (2.148) is also within normal values, averaging (1.687). Dividend Yield (0.023) settles around the average of (0.024) among similar stocks. P/S Ratio (4.335) is also within normal values, averaging (15.229).
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.
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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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