IBM breaks out

Article Excerpt

IBM, $145.22, is still a buy. The stock (New York symbol IBM; Shares outstanding: 893.5 million; Market cap: $130.2 billion; TSINetwork Rating: Above Average; Yield: 4.5%) is one of the world’s largest computer companies, with operations in over 175 countries. Thanks to rising demand for its cloud-computing services, IBM’s revenue in the three months ended March 31, 2021, rose 0.9%, to $17.73 billion from $17.57 billion a year earlier. That beat the consensus forecast of $17.34 billion. Earnings (before one-time items) fell 3.8%, to $1.77 a share from $1.84 in the quarter. However, that’s partly due to the hiring of new workers and spending on growth initiatives like artificial intelligence. Despite that decline, the latest earnings still beat the consensus estimate of $1.63. IBM’s shares have now surged 37% from the low they reached in October 2020. Still, we think the shares have room to move a lot higher. IBM remains a buy. buy…

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