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International Business Machines Corporation (IBM), with a market cap of $174.06 billion, is a global technology and consulting company dedicated to driving innovation and transformation across industries. Headquartered in Armonk, New York, IBM is committed to delivering advanced IT solutions and services, empowering businesses and individuals to thrive in the digital era. The company offers a diverse portfolio of cloud computing, artificial intelligence, data analytics, and enterprise software solutions, serving clients in numerous countries worldwide.
IBM's shares have outperformed the broader market over the past 52 weeks. IBM has surged by 32.8% over this time frame, while the broader S&P 500 Index ($SPX) rallied 20.1%. Also, in 2024, IBM’s 16.2% returns surpassed SPX's 12.9% gains on a YTD basis.
Narrowing the focus, IBM outperformed the Vanguard Information Technology ETF’s (VGT) 13.3% returns on a YTD basis.
On Jul. 24, IBM shares gained over 4% the following day after reporting Q2 results revenue and earnings of $15.77 billion and $2.43, beating analysts' expectations of $15.58 billion and $2.16, respectively.
In addition, on Jun. 18, Telefónica Tech and IBM announced a collaboration to enhance AI, analytics, and data governance solutions for enterprises in Spain. Additionally, IBM plans to invest $1 billion over five years to expand its semiconductor packaging and testing plant. It has integrated AI into its hardware for improved data management and new storage capabilities to optimize data center performance.
For the current fiscal year, ending in December, analysts expect IBM's EPS to grow by 4.6% to $10.06. The company's earnings surprise history is robust. It beat consensus estimates in all of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buys,” one “Moderate Buy,” eight “Holds,” and two “Strong Sells.”
This configuration is slightly more bullish than three months ago, with three suggesting a “Strong Buy.”
On Aug. 11, Toni Sacconaghi from Bernstein maintained a “Hold” rating on International Business Machines, with a price target of $185, which indicates a 7.1% upside from the current levels.
The mean price target of $185.80 represents a 1.9% premium to IBM’s current price levels. The Street-high price target of $211 suggests an upside potential of 11.4%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
