Dow Today: International Business Machines (IBM) Lags

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The Dow Jones Industrial Average ( ^DJI) closed down 186.0 points (-1.5%) at 12,570. During the day, 772.7 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 598 million. The NYSE advances/declines ratio closed at 320 issues advancing vs. 2,756 declining with 67 unchanged.
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Holding the Dow back today was International Business Machines (NYSE: IBM), which lagged the broader Dow index with a $2.81 decline (-1.5%) bringing the stock to $185.51. This single loss lowered the Dow Jones Industrial Average by 21.27 points or roughly accounting for 11.4% of the Dow's overall loss. Volume for International Business Machines ended the day at 4.3 million shares traded vs. an average daily trading volume of four million shares.

International Business Machines has a market cap of $213.84 billion and is part of the technology sector and computer hardware industry. Shares are up 2.4% year to date as of Tuesday's close. The stock's dividend yield sits at 1.8%.

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 13.7, 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 notable return on equity, growth in earnings per share, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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