Our #1 buy is poised for big gains

Article Excerpt

For 2021, we’ve chosen IBM as your #1 Spinoff Buy. The company’s shares have lagged other big tech stocks in the past year. That’s mainly due to concerns that IBM’s older, slower-growing legacy businesses were holding back its faster-growing cloud computing operations. The upcoming spinoff will separate these two businesses, and in the process unlock significant value for IBM shareholders. In fact, we believe the split could produce gains similar to Microsoft’s 350% rise since its shift to cloud computing services in 2014. INTERNATIONAL BUSINESS MACHINES CORP. $130 (New York symbol IBM, Manufacturing & Industry sector; Shares outstanding: 890.6 million; Market cap: $115.8 billion; Dividend yield: 5.0%; Takeover Target Rating: Lowest; www.ibm.com) is our #1 Spinoff Buy for 2021. The company is one of the world’s largest computer companies, with operations in more than 175 countries. In the past few years, IBM has built up its cloud computing business, which lets users store their files and computer programs on remote servers and access…