Dow Today: International Business Machines (IBM) Leads The Day Higher, American Express (AXP) Lags

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) closed up 96 points (+0.7%) at 13,424. During the day, 586.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 574.5 million. The NYSE advances/declines ratio closed at 2,004 issues advancing vs. 999 declining with 109 unchanged.
  • ACTIVE STOCK TRADERS: Get full access to Jim Cramer's thoughts for less than $3/week - sometimes before he says them on TV! Start with a 14-Day Free Trial.

The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $1.13 gain (+0.5%) bringing the stock to $208.93. This single gain is lifting the Dow Jones Industrial Average by 8.55 points or roughly accounting for 8.9% of the Dow's overall gain. Volume for International Business Machines ended the day at three million shares traded vs. an average daily trading volume of 3.6 million shares.

International Business Machines has a market cap of $235.14 billion and is part of the technology sector and computer hardware industry. Shares are up 13% year to date as of Friday's close. The stock's dividend yield sits at 1.7%.

International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 15, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was American Express (NYSE: AXP), which lagged the broader Dow index with a 30-cent decline (-0.5%) bringing the stock to $57.59. Volume for American Express ended the day at 5.7 million shares traded vs. an average daily trading volume of five million shares.

American Express has a market cap of $66.28 billion and is part of the financial sector and financial services industry. Shares are up 22.7% year to date as of Friday's close. The stock's dividend yield sits at 1.4%.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. The company has a P/E ratio of 13.7, equal to the average financial services industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free download now.
null

If you liked this article you might like

Your Complete Guide to Living Like Billionaire Warren Buffett

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Make Your Life Successful Just Like Billionaire Warren Buffett

How to Live Just Like Billionaire Warren Buffett

How to Make a Deal Like Billionaire Investor Warren Buffett