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NYSE:IBM

IBM Common Stock (IBM)

249.50
+0.40 (0.16%)
as of Jun 18, 2026, 11:57:34 pm Market Open.
156 watching
0
DON'T BUY

Cheap, but wouldn't buy it. The issue is they didn't have a lot of topline revenue growth, but that's changing now. Buying back shares, nice dividend of 4.4% or so, trading at 10-11x earnings. Too late to the cloud to be competitive. Better to own AMZN, MSFT or GOOG to play in the cloud.

BUY
It reports on Monday and is up 40% since its last earnings report They pay a 4.7% dividend yield so there's some margin on safety. They are returning to revenue growth, gross margins are improving, and they boast solid free cash flow that could be invested in cloud, or A.I. that drives bottom-line growth. They have 18% growth in the cloud business. No, it's not a slam dunk, and there's still work to be done, but at 13x forward earnings and approaching $130/share (long-term support) you can take a chance on this.
DON'T BUY

IBM continues to be slow. They bought Red Hat, but RH faces a lot of competition. Tuck-in acquisitions continue this year, but some concern him. They report Monday.

BUY
Hang onto it or even buy more. IBM is doing better than many people think and is solid.
BUY
The CEO is breaking the company in two and doing a great job.
DON'T BUY
Doesn't particularly like. Has never owned. Well behind the top players in the cloud. Not strong revenue growth. Grown bottom line only by buying back shares. In tech, you want to be in something that's growing and compounding at a better rate.
WATCH
It has been a restructure play for a number of years now. Cheap in technology is a dangerous issue sometimes because it can mean no growth. It is always on his radar screen. Others are more attractive in the short term.
COMMENT

They report Monday. The stock has been hanging in there and lately older tech names have been strong like Dell. Maybe IBM joins them.

RISKY
A trade, not an investment. Buy around $120, sell around $140. Hard to see a clear investment thesis on it, though it tries very hard. Legacy hardware side that they pull around like a ball and chain.
SELL
Allan Tong’s Discover Picks IBM stock was pounded nearly 10% after it released a harsh quarterly report where total sales declined for the fourth-straight report across all five of its business segments. For example, its systems business plunged 17.8% while net sales slid 6.5%. There's still hope that IBM's hybrid cloud business will pay off, after the company bought Red Hat in 2019. Read Hit and Misses: 5 Tempting Tech Stocks for our full analysis.
COMMENT
Will introduce the new management team next week. Their moderate growth, big dividend story could attract conservative investors.
DON'T BUY
Lagged higher growth areas since at least 2017. Yield is great at 5.1%. A tech company with high yield signals to him that growth is starting to stall. Be cautious. Cheap for a reason. Revenue growth looks anemic. Fine for income, not for growth.
PAST TOP PICK
(A Top Pick Oct 08/19, Down 10%) He sold most in June but holds it in his income portfolio. It was a turn around and he hoped the company would be turned around but he moved on when that thesis was washed out.
COMMENT

IBM vs. CSCO Cisco missed the boat on cloud, not a great growth rate, revenue's down, nice dividend. For dividends, likes IBM better as its risk/reward is better.

RISKY
Change in leadership, and jury's still out. A trade, more than an investment.12-month target of $129. Buy around $100-105, sell around $125-130.
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