IBM Prepares for Q1 Earnings Report; Analysts See Potential Upside

International Business Machines Corp. IBM will announce its first-quarter earnings on Wednesday. Analysts project earnings per share (EPS) of $1.40 and revenues of $14.40 billion, with the report set to be released after market hours.

Over the past year, the stock has gained 32.22% and is up 9.53% year to date. However, IBM’s stock has experienced a slight decline, dipping 3.04% in the last month.

Let’s take a closer look at the charts to see how IBM Stock is performing in relation to Wall Street expectations.

Read also: Top Wall Street Forecasters Revamp IBM Expectations Ahead Of Q1 earnings

Current Trends in IBM Stock Ahead of Earnings

Chart created using Benzinga Pro

Currently, IBM Stock exhibits a flat trend with a subtle bullish undertone. With a share price of $240.90, IBM is above its eight-day and 20-day simple moving averages, which stand at $238.83 and $239.14, respectively. This suggests a positive near-term momentum.

Additionally, IBM’s share price is well above its 200-day simple moving average of $222.81, indicating favorable conditions for long-term investors. However, challenges remain. The 50-day simple moving average, currently at $248.02, is still above the current price, suggesting potential resistance. The Moving Average Convergence Divergence (MACD) shows a negative reading of -2.18, indicating a bearish trend, while the Relative Strength Index (RSI) sits at 50.01, signaling a lack of strong momentum.

Investors may need to watch post-earnings movements to determine future direction.

Analysts Project 17% Upside for IBM Stock

Ratings & Consensus Estimates: Currently, the consensus rating for IBM Stock is Outperform, with an average price target of $213.48. Recent ratings from sources like RBC Capital, Jefferies, and Oppenheimer project an upbeat tone, averaging a price target of $287 per share, which suggests a potential upside of 16.67% from current levels.

IBM Price Action: As of the time of publication, IBM Stock was trading at $247.68.

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