#4 - IBM (NYSE:IBM)
International Business Machines (NYSE: IBM) is another technology company that is having difficulty making a pivot. The company is dipping into some of its war chest of cash to implement a growth-through-acquisition plan. It expects to be finished with those acquisitions by the end of 2023.
In the meantime, IBM has a high-margin software business, but analysts estimate revenue growth of just 3% in 2024. However, that revenue growth doesn't count all the acquisitions that Big Blue has in place. Some analysts also believe that IBM will benefit from the need for consultants to help companies implement generative AI in a responsible manner.
That's a lot of ifs for investors to digest. Nevertheless, IBM stock may appeal to value investors as it pays a reliable dividend with a 4.72% yield. The company is also a dividend aristocrat that has increased its dividend for 30 consecutive years.
But a stable dividend isn't what growth-oriented investors in the tech sector are looking for. Those investors have watched the stock do nothing for the last five years.
This range of opinions is reflected in the opinion of the 18 analysts that have issued ratings on IBM stock over the last three months. There are 12 holds and one strong sell, but five strong buys. As with other stocks on this list, there are better options for your capital in a sideways market.
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)
