IBM (NYSE:IBM) — “Big Blue” is the bluest of the blue-chip technology stocks. Its global capabilities in information technology, software, computer hardware and related financing make it a household name. It 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 have been revised recently to show an increase for 2012 to $15.09, up from $13.06 in 2011. And the company is expected to earn $16.63 in 2013.
Technically IBM had been advancing in a bull channel, but upside breaks have been followed by sharp corrections. The recent correction back under its 50-day moving average offers both traders and long-term investors an opportunity to grab this giant at a bargain price.
It is likely that the stock will not only advance to the top of the current bull channel, but exceed it and run to over $215. The longer-term objective is $230.