This Day On The Street
Continue to site
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

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 - Get Report) 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DIS $118.67 0.61%
IBM $138.00 -0.43%
LLY $83.74 -0.17%
PCLN $1,245.75 0.45%
V $79.56 -0.29%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs