Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, January 27, 2017

Article Excerpt

INTERNATIONAL BUSINESS MACHINES CORP., $177.30, New York symbol IBM, is one of the world’s largest computer companies, with operations in over 175 countries. IBM has a long history of adjusting to rapid changes in the computer technology industry. Right now, it continues to build up its software businesses as demand for mainframe computers and consulting services slows. These new software operations mainly include cloud computing services (the storage of files and programs using the Internet). The company is also developing analytics software that can process increasingly large amounts of data. That includes its Watson artificial intelligence technology. In the fourth quarter of 2016, these new products (IBM calls them “Strategic Imperatives”), accounted for over 40% of the company’s total revenue. It’s likely they will provide 50% of its revenue by the end of 2017. IBM will probably earn $13.80 a share in 2017, and the stock trades at a low 12.8 times that forecast. The $5.60 dividend yields 3.2%. OUR RECOMMENDATION: IBM is our #1…