This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

3 Top Tech Stocks for 2012

Stocks in this article: IBMCRMJNPRAAPLGOOGCSCO

IBM

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Market Cap: $227.31 billion.

IBM may not be one of tech's sexier stocks, but Big Blue has plenty to offer investors in 2012, as evidenced by its new 52-week high on Monday. Even Warren Buffett is getting in on the action, recently grabbing $10.7 billion worth of the company.

"If the global or regional economies continue to stagger, I think that investors and institutional investors are going to see a lot of value in steady dividend payers like IBM," explained Pund-IT's King. "When you have got a seasoned investor like Warren Buffett that has traditionally avoided tech, getting involved , it's an interesting indicator of what may be ahead."

The server, software and services giant also hiked its dividend to 75 cents a share from 65 cents earlier this year. This year marks the 16th year in a row that the firm has raised its quarterly dividend.

IBM, which recently beefed up its share buyback, has returned over $109 billion to shareholders since 2003 through repurchases and dividends.

TheStreet Ratings cites IBM as a buy, pointing to its strength in a number of areas, such as revenue growth, return on equity, stock performance, earnings growth and expanding profit margins.

IBM, however, was punished by investors recently when it missed Wall Street's third-quarter revenue estimate, although the tech bellwether is still seen as one of the more dependable tech stocks.

The Armonk, N.Y.-based firm may lack the cachet of trendier companies such as Apple (AAPL) and Google (CSCO), although its vast software and services businesses offer consistently stable revenue streams, helping insulate the firm against economic unease.

Shrewdly selling off its PC business to Lenovo way back in 2004, IBM has successfully shifted its focus onto high-margin areas, something which rivals such as Hewlett-Pakcard (HPQ) are now attempting to emulate.

IBM's software business, for example, continues to enjoy strong growth. The tech bellwether's software revenue grew 13% year over year to $5.8 billion during its recent fiscal third quarter. The company's services division has also been performing well, with revenue growing 8% year over year to reach $10.3 billion.

Set against this backdrop, IBM's shares have risen almost 31% this year and incoming CEO Ginni Rometty is expected to continue the good work of her predecessor, Sam Palmisano.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,806.45 -8.49 -0.05%
S&P 500 2,068.45 +1.42 0.07%
NASDAQ 4,769.6430 +11.3910 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs