IBM (IBM, $134.15) beats Q4 earnings expectations
IBM posted adjusted earnings of $3.35 per share for the fourth quarter, beating the $3.30 per share expected by analysts polled by Refinitiv.
The tech/cloud company’s revenue came in at $16.70 billion also surpassed analysts’ expectations of $15.96 billion.
IBM streamlined its reporting segments for the fourth quarter amid its spin-off of infrastructure services business Kyndryl. Revenue from its software business, formerly known as Cloud and Cognitive Software, came in at $7.27 billion in revenue, up 8% year-over-year and above the $6.72 billion consensus among analysts polled by StreetAccount.
Revenue in the consulting unit, previously named Global Business Services, climbed +13% from the year-ago quarter to $4.75 billion, exceeding the $4.20 billion StreetAccount consensus.
The IBM infrastructure business revenue fell -0.3% to $4.41 billion and a bit lower than the $4.43 billion consensus.
IBM in upward trend: 10-day moving average crossed above 50-day moving average on November 07, 2023
The 10-day moving average for IBM crossed bullishly above the 50-day moving average on November 07, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In 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 .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 26, 2023. You may want to consider a long position or call options on IBM as a result. In of 77 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 October 26, 2023. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
IBM moved above its 50-day moving average on October 31, 2023 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 334 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 261 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 RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 22 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
IBM broke above its upper Bollinger Band on December 01, 2023. 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.
Fundamental Analysis (Ratings)
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 (6.158) is normal, around the industry mean (4.190). P/E Ratio (20.080) is within average values for comparable stocks, (47.731). IBM's Projected Growth (PEG Ratio) (0.416) is slightly lower than the industry average of (1.399). Dividend Yield (0.043) settles around the average of (0.028) among similar stocks. P/S Ratio (2.357) is also within normal values, averaging (13.399).
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 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 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 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 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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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices
IBM and
Correlation & Price change
A.I.dvisor indicates that over the last year, IBM has been loosely correlated with ACN. These tickers have moved in lockstep 57% of the time. This A.I.-generated data suggests there is some statistical probability that if IBM jumps, then ACN could also see price increases.