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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Rocket Stocks to Buy in October

International Business Machines

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

Get Adobe Flash player

$240 billion information technology giant International Business Machines (IBM) has done a good job of keeping pace with a fast moving market this year. Shares of the firm have rallied 14.5% since the start of January, with 1.61% dividend yield tacked on top. Now, with third-quarter earnings slated for next week, Big Blue is one Rocket Stock name that looks primed to push ahead of the S&P.

>>9 Dow Dividend Stocks With A+ Buy Ratings

IBM is one of the biggest IT firms in the world, selling its computer hardware, software and services to other businesses around the globe. The firm is the league leader in the mainframe business, a complex business that has high barriers to entry, and it's able to trade off of its name to generate heftier premiums for its services than many peers. That's particularly true given the fact that IBM has a bigger service catalog than other IT firms. As a result, it's able to pull more value out of its customer Rolodex than most rivals can.

The past decade has been volatile for the tech industry, but IBM has proven prescient. The company unloaded its personal computer unit to Lenovo back in 2005, well before the commoditization of PCs was a major concern for most computer makers. In its place, the firm moved into lucrative (and high margin) consulting jobs and hardware sales where it could get deeply integrated into clients' operations.

IBM also has an impressive history of returning cash to shareholders in the form of dividends and buybacks; last year, the firm spent $16.07 billion to boost shareholder returns. Investors should pay attention to those priorities.

2 of 6

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!
DOW 17,098.45 +18.88 0.11%
S&P 500 2,003.37 +6.63 0.33%
NASDAQ 4,580.2710 +22.5760 0.50%

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