#2 - IBM (NYSE:IBM)
IBM (NYSE: IBM) IBM has had one of the roughest years among the Dow Jones components. The stock is down 18.6% for the year after a brutal 23.7% decline in October. In the summer, Warren Buffet sold a third of his shares in the company after it reported weaker than expected operating margins which led some analysts to question whether IBM would be able to meet their forecasted annual earnings. IBM has been conspicuously transitioning their business model from a hardware company to a business focused on software and analytics. It appears that for now, the transition is working. In early November, Ancestry along with several European startups announced plans to work with IBM's Cloud services for their artificial intelligence (AI), blockchain and Internet of Things (IoT) technologies. However, despite this good news, investors are seeing history repeating itself as IBM recently paid a high premium to buy out Red Hat which dilutes the value of their brand. The stock was already trading at a discount to a fair market value before the Red Hat announcement, but with the stock currently in dead last among the Dow 30 components, investors seem to be signaling that IBM may have some fences to mend before investors go all in with the stock.
About International Business Machines
International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.
Read More - Current Price
- $223.36
- Consensus Rating
- Hold
- Ratings Breakdown
- 6 Buy Ratings, 8 Hold Ratings, 3 Sell Ratings.
- Consensus Price Target
- $208.94 (6.5% Downside)
