Top Stock to Buy #3 – IBM (IBM)
“Big Blue” is the bluest of the blue-chip technology giants. Its global capabilities in information technology, software, computer hardware, and related financing make it a household name.
IBM (NYSE:IBM) is a company that is in full maturity, and so future growth is expected to result from strong trends in emerging markets and improved profitability in its more developed markets. Earnings for 2012 are estimated to increase to $14.93, up from $13.49 in 2011. And IBM is expected to earn $16.41 in 2013.
Technically the stock has been advancing in a bull channel, but upside breaks have been followed by sharp corrections. It could advance to the top of the current channel at $205, but is not one to chase at this price.
IBM shareholders should consider writing options on the stock, and those thinking of investing should wait for a pullback below $188. The fundamental target for the stock is $205, but technically the very organized bull channel could exceed $210.