Why Dow stock IBM looks undervalued into earnings

Earnings


IBM is set to report earnings next week, and one market watcher sees the stock as a value play at current levels.

The company is scheduled to announce quarterly results Thursday after the market closes, and Mark Tepper of Strategic Wealth Partners likes the stock, off to a strong start to the year, ahead of its report. Here are his reasons why.

• The stock is undervalued relative to its peers, with a forward price-earnings ratio of 11.8, according to FactSet data.

• The company is strong in the cloud, mobile, security and analytics spaces.

• IBM is expanding its footprint in the growing blockchain market.

The stock fell nearly 8 percent last year and the company has seen 22 straight quarters of declining revenue. Still, after its last earnings report in October, the stock surged 9 percent.

Bottom line: Tepper sees IBM as a value at these levels, ahead of the company’s earnings report next week.

Disclosure: Neither Mark Tepper nor his firm owns IBM.



Source link

Articles You May Like

Gig jobs could boost your bottom line in retirement
Tax cut windfall has gone more to executives than to workers: TrimTabs
Apple remains an ‘uninspired investment,’ prepare for earnings miss: Analyst
Americans don’t know if the new tax code will be good or bad for them, poll finds
General Electric sets aside $1.5 billion for DOJ investigation

Leave a Reply

Your email address will not be published. Required fields are marked *