Tech Titans Gear Up for Critical Q3 Earnings Reports
Several prominent technology companies, led by International Business Machines IBM, are preparing to unveil their third-quarter earnings on Tuesday, October 22. Investors are eagerly anticipating these results.
This article offers an earnings preview for IBM and highlights two IT services stocks worth watching as their Q3 reports approach.
Anticipating IBM’s Earnings
Expanding beyond its established hardware business, IBM has been making strides in cloud and data platform services, drawing significant investor interest. This year, its stock has increased by over 40%.
IBM currently holds a Zacks Rank of #3 (Hold), with analysts expecting a 3% rise in Q3 earnings per share (EPS) to $2.27. Projected sales stand at $15.14 billion, reflecting a 2% boost compared to the same period last year. Remarkably, IBM has exceeded the Zacks EPS consensus for six consecutive quarters, averaging a 6.08% positive surprise over its last four reports.
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Watchlist: CoStar Group & Vertiv
CoStar Group CSGP and Vertiv VRT are two IT service leaders to keep an eye on, both strong performers in the current market, holding Zacks Rank #2 (Buy). Their sector is thriving, currently sitting in the top 21% of over 250 Zacks industries.
CoStar’s stock is down 11% this year but could be positioning itself for a rebound as a provider of online real estate marketplaces and data analytics. In contrast, Vertiv has experienced remarkable growth, with its stock climbing over 100% this year thanks to its focus on digital infrastructure and continuity solutions.
Interestingly, both companies have consistently outperformed expectations, with CoStar achieving an average earnings surprise of 34.12% and Vertiv reporting 12.92%, impressively exceeding the Zacks EPS consensus in their last four quarterly reports.
Conclusion
IBM, CoStar, and Vertiv emerge as key tech stocks to watch during this week’s earnings season. If these companies continue their trend of beating profitability expectations and meeting sales forecasts while providing optimistic guidance, they may see a strong post-earnings rally.
Zacks Highlights Top Semiconductor Stock
This emerging semiconductor stock, substantially smaller than NVIDIA, which has surged over 800% since our recommendation, is drawing attention for its potential growth prospects.
Given the robust demand for technology like Artificial Intelligence, Machine Learning, and the Internet of Things, global semiconductor manufacturing is projected to soar from $452 billion in 2021 to $803 billion by 2028.
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International Business Machines Corporation (IBM): Free Stock Analysis Report
CoStar Group, Inc. (CSGP): Free Stock Analysis Report
Vertiv Holdings Co. (VRT): Free Stock Analysis Report
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
