Should I sell IBM stock?
Valuation is also important, so investors should note that IBM has a Forward P/E ratio of 12.06 right now. Its industry sports an average Forward P/E of 16.53, so we one might conclude that IBM is trading at a discount comparatively. Also, we should mention that IBM has a PEG ratio of 2.03.
When will IBM split?
On October 8, 2020, IBM announced its intention to separate the Managed Infrastructure Services (MIS) business of its Global Technology Services (GTS) segment into a new public company, Kyndryl, creating two industry-leading companies with strategic flexibility and focus to drive client and shareholder value.
Is IBM going to split?
International Business Machines Corporation (IBM) CEO Arvind Krishna said on Tuesday that he is not looking to split up the technology company and won't cut its 5% dividend. The company withdrew its 2020 annual forecast due to coronavirus concerns on April 20.
Why did IBM fail at PCS?
In the early 1990s, IBM made a painful transition from selling computers to selling services and software. Services and software proved to be more profitable. For a time, IBM kept selling PCs because it made it easier to sell services. But eventually that stopped being enough of an advantage, so IBM sold off its PC line in 2005 to Lenovo.
Why is IBM's stock dropping?
International Business Machines Corp. shares fell Tuesday after an analyst downgraded the stock on concerns about revenue growth following Big Blue's spinoff of Kyndryl Holdings Inc. and IBM's ability to compete in the cloud market.
Is IBM a good stock to buy 2021?
2021 showed a rebound with an approximately 4% revenue growth. IBM has acquired 15 companies in 2021 to improve its hybrid cloud and AI capabilities. It is not a perfect stock as its debt-to-equity (D/E) ratio of 2.92 is high. Altogether, IBM is a blue-chip stock that could give a strong financial performance in 2022.
Is IBM stock a good buy right now?
IBM stock is presently not a buy. Like most tech stocks, the IBM chart is messy. The encouraging news is that IBM stock is trading above its 50-day moving average and is positioned right at the 200-day line. A cup with handle is forming with a 142.30 buy point.
Is IBM growing again?
Firstly, IBM is growing once again after several years of revenue declines, following the spin-off of its low-margin information-technology services business.
Is IBM going to survive?
IBM has survived major technology sector upheavals in its more than 100-year history, but now it's playing catch-up in cloud computing and AI. The technology sector demands a degree of adaptability like no other. Thus far, IBM has been able to reinvent itself and survive, if not always thrive.
Is IBM a buy or sell?
IMB stock is a buy according to Morgan Stanley. On Thursday, he boosted the firm's rating on IBM (ticker: IBM) shares to Overweight from Equal Weight, with a new price target of $150, up from $147. IBM shares on Thursday were recently up 1% to $127.43.
Is IBM a safe investment?
IBM's dividend will remain secure for years thanks to the company's ability to generate free cash flow, which IBM expects will hit a cumulative total of $35 billion from 2022 to 2024. This factors in 2022 free cash flow coming in toward the low end of its forecasted $10 to $10.5 billion range.
Is IBM a buy 2022?
IBM could perform better than other hardware companies in the market now that over half of its revenue is recurring, one analyst said. Analysts expect IBM's revenue growth to accelerate in 2022.
Is IBM undervalued?
Furthermore, IBM stock is currently undervalued relative to its sector peers, with its non-GAAP price-to-earnings ratio trading below the sector average by 41%.
What do analysts say about IBM stock?
Stock Price Forecast The 17 analysts offering 12-month price forecasts for International Business Machines Corp have a median target of 145.00, with a high estimate of 185.00 and a low estimate of 115.00. The median estimate represents a +6.47% increase from the last price of 136.19.
Will IBM increase its dividend in 2021?
Consistent Dividend Increases for IBM Stock And now we know that the company can do this. Its annual free cash flow should be sufficient. Moreover, analysts expect that IBM will post significantly higher earnings this year than in 2021.
Is IBM making money?
IBM sells software, offers consulting services, and provides hybrid cloud infrastructure solutions. The Software segment is IBM's biggest source of revenue and profits. IBM strives to be a leading provider in the hybrid cloud and AI.
Is IBM stock a Buy, Sell or Hold?
IBM stock has received a consensus rating of buy. The average rating score is A3 and is based on 16 buy ratings, 6 hold ratings, and 1 sell ratings.
What was the 52-week low for IBM stock?
The low in the last 52 weeks of IBM stock was 114.59. According to the current price, IBM is 118.79% away from the 52-week low.
What was the 52-week high for IBM stock?
The high in the last 52 weeks of IBM stock was 146.03. According to the current price, IBM is 93.21% away from the 52-week high.
What are analysts forecasts for IBM stock?
The 23 analysts offering price forecasts for IBM have a median target of 153.78, with a high estimate of 176.00 and a low estimate of 124.00. The m...
How much did IBM lose in 2020?
Who is the CEO of IBM?
The company did, however, continue to crank out cash. IBM's 2020 full-year free cash flow checked in at $10.8 billion.
What is the Motley Fool's recommendation for Amazon?
IBM CEO Arvind Krishna is asking investors to remain patient as IBM executes its turnaround strategy, but the company's lackluster cloud growth is making it more difficult for shareholders to remain optimistic. Many decided to sell their shares on Friday rather than continue to wait for IBM's growth to rebound.
Is IBM streamlining its business?
The Motley Fool owns shares of and recommends Amazon and Microsoft and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool has a disclosure policy.
What happened
That was slightly below the nearly $20.7 billion Wall Street had expected. IBM is streamlining its business to focus more on its cloud operations. However, the shift isn't progressing as well as many analysts anticipated.
So what
Investors in International Business Machines (NYSE: IBM) are feeling "big blue" today -- and not in a good way. As of 10:10 a.m. ET, shares of the computing giant are down 4.1%.
Now what
Swiss megabank UBS downgraded IBM stock to a sell rating this morning, you see, and cut its price target on the tech giant to $124 per share -- $5 below where it trades even after this morning's sell-off, which implies there may be even more pain to come.
The Motley Fool
UBS estimates that IBM will earn only about $9.47, pro forma, per share this year, well below the stock's $10.30 consensus earnings target on Wall Street.
