International Business Machines Corp. (NYSE:IBM) stock has had a nice run since August. Note that the shares have jumped from $140 to $164.

Yet the fact is that the long-term performance has been, well, a dud. During the past five years, the average return for IBM stock has been roughly -0.73%. During the period, the gain for the S&P 500 was 16.01%.

So yes, IBM stock still has a lot to prove, especially since the top line has been on the downtrend. Although, I think there are encouraging signs of progress. The main reason? The company’s heavy investments in next-generation technologies are showing lots of promise — and results.

Just look at blockchain. This technology, which is at the foundation of cryptocurrencies like bitcoin and Ethereum, has proven to be quite powerful as a secure, shared and transparent ledger for complex transactions.

A good example is a recent deal with Maersk, which is the world’s largest container operator. IBM and Maersk have built a blockchain platform that digitizes the paper-intensive system of international trade.

The market is certainly massive. Over $4 trillion in goods are shipped every year and 80% of the goods consumers use daily are carried via the shipping industry. The costs of documentation and administration is estimated to be about a fifth of the transportation costs! In other words, the IBM-Maersk deal could move the needle.

But of course, there are other important deals. For example, IBM has entered an alliance with Wal-Mart Stores Inc (NYSE:WMT), JD.Com Inc(ADR) (NASDAQ:JD) and the Tsinghua University National Engineering Laboratory for E-Commerce Technologies. The focus is to develop a blockchain platform that will improve the tracking of food in China so as to promote safety.

Oh, and IBM is also using blockchain systems for internal purposes. One case of this is with its global financing business, which has seen a reduction of 75% in time spent resolving financial disputes.

However, it’s still not clear how large the market opportunity is for blockchain. But based on a report from Gartner, the technology is expected to be a key driver for growth in overall IT spending.

As IBM CEO Ginni Rometty has noted: “What the internet did for communications, I think blockchain will do for trusted transactions.”

Bottom Line On IBM Stock

Blockchain will probably not be a panacea for IBM stock, though. The market will take time to grow — perhaps decades.

But when it comes to IBM stock, it’s important to keep in mind that blockchain is just one part of the key elements of the potential growth story. Over the years, IBM has been focused on categories like AI (Artificial Intelligence), cloud computing, cybersecurity and quantum computing.

To put things into perspective, the company has been amassing a tremendous patent portfolio. For 25 consecutive years, IBM has led the U.S. in patent issuances – for a total of over 105,000. Many of these have been in key next-generation technologies.

More importantly, the company has been finding ways to commercialize its innovations. During the latest quarter, there was continued growth with its Strategic Imperatives and the cloud business saw a 20% increase in revenues to $4.1 billion.

Now as for the IBM stock price, the valuation is fairly attractive as well. Consider that the forward price-to-earnings ratio is at 11.8X and the dividend yield is 3.7%.

So all in all, the company is in the value range. Thus, if growth does perk-up — which seems reasonable in light of the strength of the technologies — the shares do look like an interesting opportunity right now.

Tom Taulli is the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.