Put IBM, The Gap Shares In Your Shopping Bag Says S&P Capital IQ
The challenges for revenue growth are apparent for IBM, but the technology giant's income and equity yield make the stock attractive, said Erin Gibbs, Equity Chief Investment Officer for S&P Capital IQ. Gibbs added that market sentiment right now around older technology stocks like IBM is not favorable, but that is another reason why it is a good value. She said margins are being compressed as CenturyLink invests in its new offerings, nevertheless, earnings per share at the telecom are expected to grow 88% in 2015 compared to 2014. Furthermore, Gibbs likes CenturyLink's 5.5% dividend yield, one of the highest in the S&P 500. Finally, Gibbs is positive on The Gap, saying the retailer is focused on share buybacks, buying back about 6.5% of shares last year and reiterating commitment to the buyback plan.