IBM Gaps Up Big on Earnings: Further Gains Likely

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 |  About: International Business Machines Corporation (IBM)
by: Bespoke Investment Group

IBM (NYSE:IBM) is currently set to open higher by 7.91% this morning after issuing positive earnings guidance. This opening gap would be the largest for the stock since 10/02 and the 6th largest since 1968.

Below we highlight all up gaps of 5% or more and provide how the stock traded from the open to the close that day. As shown, when the stock has gapped up 5% or more in the past, it has traded higher from the open to the close 65% of the time for an average change of 0.96%.