IBM is still a #1 pick

Article Excerpt

IBM, $241.82, is a #1 Buy for 2025. The company (New York symbol IBM; Shares outstanding: 929.4 million; Market cap: $222.5 billion; TSINetwork Rating: Above Average; Dividend yield: 2.8%; www.ibm.com) reported better-than-expected results for the first quarter of 2025. In the three months ended March 31, 2025, revenue rose 0.5%, to $14.54 billion from $14.46 billion a year earlier. However, earnings excluding one-time items fell 3.0%, to $1.52 billion from $1.56 billion. Due to more shares outstanding, per-share earnings declined at a faster pace of 4.8%, to $1.60 from $1.68. The lower earnings are partly because IBM continues to invest heavily in its artificial intelligence software. The company’s R&D costs rose 8.6% in the latest quarter, to $1.95 billion (or 13.4% of sales) from $1.80 billion (12.4%). Investors should expects overall revenue to rise at least 5% in 2025. IBM is a #1 Buy for 2025. 2025…