Top Stock to Buy #5 – IBM (IBM)
IBM (NYSE:IBM), nicknamed “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. It is a company in full maturity, so future growth is expected to result from strong trends in emerging markets and improved profitability in its more developed markets. It is also uniquely qualified among the larger technology companies to benefit from “the cloud.”
Earnings estimates for 2012 have been revised upward to $15.13 from $14.93, versus $13.44 in 2011. And the company is expected to earn $16.66 in 2013.
Technically, IBM has been advancing in a bull channel, but upside breaks have been followed by sharp corrections. The stock is now completing one of those corrections, so traders and long-term buyers should at least take a partial position since both the fundamental and technical outlook are sound.
The fundamental target for the stock has been revised upward to $222 from $205, and technically, a quick run to $210 is likely, but a stop-loss order should be entered at $179. Investors are encouraged to take long-term positions now in this blue-chip performer as a cornerstone investment.