IBM Bulls In Control: Will Q4 Earnings Keep The Rally Alive?

International Business Machines Corp IBM will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects $3.75 in EPS and $17.54 billion in revenues as the company reports after market hours.

The stock is up 20.58% over the past year, 2.60% YTD.

Let’s look at what the charts indicate for IBM stock and how the stock currently maps against Wall Street estimates.

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IBM Stock Riding Bullish Momentum Ahead Of Q4 Earnings

IBM stock is riding a wave of bullish momentum, with its share price of $225.66 comfortably above its five, 20 and 50-day exponential moving averages.

Chart created using Benzinga Pro

This technical strength signals sustained buying pressure, a positive indicator for future bullish movement. IBM stock's eight-day, 20-day, 50-day and even 200-day simple moving averages all suggest bullish conditions, reinforcing investor confidence.

The Moving Average Convergence Divergence (MACD) at 0.34 adds to the upside case, while the Relative Strength Index (RSI) of 55.11 indicates there's still room for gains before overbought conditions kick in.

For investors, the current setup suggests IBM stock could continue its upward trajectory, making it an appealing option for those looking to ride the momentum.

IBM Analysts See 3% Upside

Ratings & Consensus Estimates: The consensus analyst rating on IBM stock stands at a Outperform currently with a price target of $200.19. The three most recent ratings, from Morgan Stanley, RBC Capital and JPMorgan, have an average target of $233.33, implying a 3.32% upside for IBM.

IBM Price Action: IBM stock closed the trading day Tuesday at $1.53, up 0.68%.

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