IBM (IBM) shares rallied 5.2% in the last trading session to close at $281.44. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock’s 9.3% gain over the past four weeks.
IBM continues to push the boundaries of quantum technology to explore solutions to complex problems beyond the reach of classical computing. The company has inked a partnership with Advanced Micro Devices, Inc. to develop scalable, open-source platforms that could redefine the future of computing. The next-generation computing architectures, known as quantum-centric supercomputing, will introduce a new dimension to the realm of quantum computing by enabling users to increase the complexity of algorithms in the quantum hardware. As users seek to achieve quantum advantage — where quantum computers outperform the classical ones — the new quantum-centric supercomputing could pave the way for technological innovations across the quantum ecosystem.
This technology and consulting company is expected to post quarterly earnings of $2.43 per share in its upcoming report, which represents a year-over-year change of +5.7%. Revenues are expected to be $16.08 billion, up 7.4% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For IBM, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on IBM going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>
IBM is part of the Zacks Computer – Integrated Systems industry. IonQ, Inc. (IONQ), another stock in the same industry, closed the last trading session 6% lower at $69.43. IONQ has returned 78.3% in the past month.
IonQ’s consensus EPS estimate for the upcoming report has changed -29.7% over the past month to -$0.24. Compared to the company’s year-ago EPS, this represents no change. IonQ currently boasts a Zacks Rank of #3 (Hold).
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