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IBM on Deck, Expected to Deliver

Software accounted for 24% of IBMs overall revenue during its second quarter, with services making up 57% of the company's overall sales.

A recent survey from of Chief Information Officers (CIOs) by Citi Research also pointed to IBM's services strength. "Our incremental analysis of data from our survey of 260 CIOs in 3Q12 indicates that IBM and Computer Sciences (CSC) led the list of wallet share gainers while HPQ, Xerox (XRX - Get Report) and Deloitte led the list of wallet share losers," wrote Citi analyst Ashwin Shirvaikar. "We reiterate our Buy on IBM and Sell on HPQ."

Investors will be closely monitoring IBM's performance in "growth", or emerging, markets on Tuesday. During the second quarter, revenue from the company's growth markets increased 2%, or 8% adjusted for currency, and more than 30 countries had double-digit growth, also adjusted for currency. Big Blue's revenue in Brazil, Russia, India and China, the so-called BRIC countries, increased 5%, or 12%, adjusted for currency.

Ultimately, IBM could offer investors some calm in the storms gathering around Silicon Valley, according to Keith Bachman, an analyst at BMO Capital Markets.

"We think that both IBM and Accenture are relatively 'safe stocks' with small variances in results, and thus, investors can have high confidence in the consistency of results and capital allocation," he wrote, in a recent note.

Shares of IBM rose 0.57% to $210.13 on Tuesday.

-- Written by James Rogers in New York.

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