I recently took another look at International Business Machines Corp. (NYSE:IBM). Some people thinks it’s done for as after it reached a high of $215 in 2013, it has since gone down to the $150 area and now it’s back up to the $170 area. Is IBM still a valid investment?
Here’s why I believe IBM is turning a new leaf with proof of growth.
- IBM is transforming its business, just like its many enterprise clients who want to extract value with new technologies such as the cloud, Big Data, analytics, social, and mobile.
- IBM is innovating, moving towards high value products and services, as well as developing open ecosystems and forming strategic partnerships with leading companies including Apple, Facebook, Twitter, SAP, and Tencent.
- Other than its Hybrid Cloud, IBM’s customizable POWER microprocessor, and Watson Analytics are also showing promising growth potential.
- The company is undervalued and at a high yield of 3%, its shares are attractive.
Is IBM a Buy Today?
IBM has increased its dividends for 20 years in a row. It continues to return substantial value to shareholders through dividends and share buybacks. Its last dividend growth rate was an impressive 18.18%. Most importantly, its shares are undervalued trading close to a P/E of 11.
See the full Seeking Alpha article on: Growth Has Finally Dawned On IBM As It Continues To Transform.
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Disclaimer: I am not a certified financial advisor. This article is for educational purposes, so consult a financial advisor and or tax professional if necessary before making any investment decisions.
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