International Business Machines Corporation (IBM) is Attracting Investor Attention: Here is What You Should Know

IBM (IBM) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this technology and consulting company have returned +8.8%, compared to the Zacks S&P 500 composite's +2.9% change. During this period, the Zacks Computer - Integrated Systems industry, which IBM falls in, has gained 8.5%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate Revisions

Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.