Dow Today: International Business Machines (IBM) Lower

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) is trading down 61.0 points (-0.4%) at 14,757 as of Tuesday, Apr 30, 2013, 10:35 a.m. ET. During this time, 152.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 603.8 million. The NYSE advances/declines ratio sits at 1,195 issues advancing vs. 1,579 declining with 154 unchanged.
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Holding back the Dow today is International Business Machines (NYSE: IBM), which is lagging the broader index with a 13-cent decline to $199.02. This single drop is lowering the Dow Jones Industrial Average by 0.98 points or roughly accounting for 1.6% of the Dow's overall loss. Volume for International Business Machines currently sits at 1.6 million shares traded vs. an average daily trading volume of 3.9 million shares.

International Business Machines has a market cap of $216.16 billion and is part of the technology sector and computer hardware industry. Shares are up 1.4% year to date as of Monday'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 13.3, 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 and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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