Trade-Ideas: International Business Machines (IBM) Is Today's Post-Market Leader Stock
Trade-Ideas LLC identified
International Business Machines
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified International Business Machines as such a stock due to the following factors:
- IBM has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $515.1 million.
- IBM is up 2.6% today from today's close.
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More details on IBM:
International Business Machines Corporation provides information technology (IT) products and services worldwide. The company's Global Technology Services segment provides IT infrastructure services, such as IT outsourcing, integrated technology, cloud, and technology support services. The stock currently has a dividend yield of 3.5%. IBM has a PE ratio of 12. Currently there are 7 analysts that rate International Business Machines a buy, 3 analysts rate it a sell, and 8 rate it a hold.
The average volume for International Business Machines has been 3.8 million shares per day over the past 30 days. International Business Machines has a market cap of $153.9 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.78 and a short float of 2.1% with 6.48 days to cover. Shares are up 16.1% year-to-date as of the close of trading on Friday.
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Analysis:
rates International Business Machines as a
. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 56.37% to $5,645.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 31.57%.
- The gross profit margin for INTL BUSINESS MACHINES CORP is rather high; currently it is at 52.71%. Regardless of IBM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 10.77% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 7.8%. Since the same quarter one year prior, revenues slightly dropped by 4.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the IT Services industry and the overall market, INTL BUSINESS MACHINES CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 3.05 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Even though the debt-to-equity ratio is weak, IBM's quick ratio is somewhat strong at 1.20, demonstrating the ability to handle short-term liquidity needs.
- You can view the full International Business Machines Ratings Report.
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