NEW YORK (TheStreet) -- Despite 16 consecutive quarters of negative revenue growth, IBM(IBM) - Get Report continues to build momentum in its transition toward basing its business upon a hybrid cloud environment model.

IBM CFO Martin Schroeter points to the company's strategic imperatives as the best indicator of how well IBM is performing.

"We continue to see very good momentum in the cloud business, up 30% within the quarter and that's the theme the clients continue to move toward as they think about how to get to a hybrid cloud environment," Schroeter said on CNBC's "Closing Bell." "And then within the cloud business, we have good, strong growth as a service business."

IBM now receives more than $30 billion of its revenue from those strategic imperatives, which Schroeter says means the company is "certainly on track if not a little ahead" of its goal of $40 billion of revenue from strategic imperatives in 2018.

"Across IBM we have what we consider a cloud first approach," Schroeter noted.

While IBM has completed "quite a few acquisitions" over the past year, Schroeter noted that only half of the cloud services growth came from acquisitions.

"The rest is from our own organic capabilities as a service," Schroeter added.

Separately, TheStreet Ratings team rates IBM as a "Buy" with a ratings score of B-.

This is driven by multiple strengths, which TheStreet Ratings believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks TheStreet Ratings covers. 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. TheStreet Ratings feels its strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: IBM

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