Is International Business Machines Corporation (NYSE:IBM) A Safe Bet For Investors?


International Business Machines Corporation (NYSE:IBM) closed its last session at $151.4. The stock traded within a range of $150.30 and $152.40. The company operates in the Technology sector with a market capitalization of 140.72 Million. Trading volume for International Business Machines Corporation was 5.84 Million in its previous trading session. Currently, International Business Machines Corporation (NYSE:IBM) has an average volume of 5.55 Million.

Company Profile

IBM is an information technology (IT) company. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The Global Technology Services segment provides IT infrastructure services and business process services. The Global Business Services segment offers professional services and application management services. The Software segment consists primarily of middleware and operating systems software. The Systems and Technology segment provides computing power and storage solutions; and semiconductor technology products and packaging solutions. The Global Financing segment invests in financing assets, leverages with debt and manages the associated risks. IBM is headquartered in Armonk, New York.

Analyst Views

International Business Machines Corporation (NYSE:IBM) received a Buy rating from 3 analysts. 0 analysts gave its stock an Outperform rating. 7 analysts say it’s a Hold while 0 analysts provided their expert opinion as Sell.

International Business Machines Corporation (NYSE:IBM) touched its 1-Year High price of $182.79 on 02/16/17 and its 1-Year Low price of $139.13 on 08/21/17.

EPS & Financials

International Business Machines Corporation (NYSE:IBM) reported its EPS in the last quarter as $5.18/Share beating the analyst estimate of $5.17/Share by a difference of $0.01. This showed a surprise of 0.2% in the last quarter earnings.

For the current quarter, 19 analysts are projecting a mean EPS of $2.4/share. According to their observations and findings, the stock could provide a high EPS of $2.49/share and a low EPS of $2.17/share.

Analysts believe that the company has the potential to earn average revenue of $18.77 Billion for the current quarter. According to their predictions high & low revenue estimates are 19.2 Billion and 18.2 Billion respectively.

Technical Analysis

By taking a look at the stock’s current statistics it can gauged that the stock candle is BULLISH with HIGH volatility. International Business Machines Corporation (NYSE:IBM) has a 20-Day average volume of 7.55 Million. According to today’s trading volume International Business Machines Corporation is BELOW its 20-Day Avg. volume with the stock showing ABOVE Abnormal volume in the past 150 days.

Moving average convergence divergence (MACD) shows that the stock is on a PRICE RELATIVITY trend. The trend for the past 10-days shows that the company was in BEARISH territory while an analysis of the last 40-Day trend shows a BULLISH signal. The 100-Day trend also shows a BULLISH trend as well.

The company currently has an insider ownership of 0.09 Percent and Institutional ownership of 59.5 Percent. The return on assets stands at 9.6%, Return on Equity currently is 61.3% and the Return on Investment value is 19.7%.

International Business Machines Corporation (NYSE:IBM) gross margin percentage stands at 45.8% while its operating margin for the past trailing twelve month is 15.3 percent and its overall profit margin (ttm) is 14.4 Percent. The stock is currently moving below its 20-Day Simple Moving Average of -6.21% with a 50-Day Simple Moving Average of -4.26 percent. As of today, the company has a SMA200 (200-day simple moving average) of -0.28 Percent. The Stock has YTD (year to date) performance of -1.32 percent.

The TTM operating margin for the company stands at 15.3%. The return on invested capital is at 19.7%, which is good, compared to its peers. The Free Cash Flow or FCF margin is 16.27.

The company’s stock is currently moving with a -ve distance from the 200 day SMA of approximately -0.28%, and has a solid year to date (YTD) performance of -1.32% which means that the stock is constantly adding to its value from the previous fiscal year end price.