NYSE:IBM

IBM Common Stock (IBM)

306.13
+6.61 (2.21%)
as of Jul 7, 2026, 8:00:00 pm Market Open.
276 watching
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Investor Insights
star iconJul 7, 2026, 12:00 am

This summary was created by AI, based on 25 opinions in the last 12 months.

IBM Common Stock has received mixed reviews from various experts, showcasing a blend of confidence and caution regarding its future. The stock has experienced a significant drop, down 17% this year, yet many analysts see potential growth driven by key sectors like AI and quantum computing. While various analysts recognize the company's considerable investments in hybrid cloud and AI, concerns about its valuation and past performance also emerge. Analysts generally agree that despite some execution slip-ups, IBM maintains strong software capabilities and a promising future, particularly with its $1.3 trillion addressable market in quantum computing by 2030. Overall, while some view IBM as a buying opportunity, others express worries about its competitive position and valuation metrics.

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Consensus
Hold
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Valuation
Fair Value
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BUY
Likes IBM here. Pays a nice dividend. Legacy IBM is not great but Red Hat is doing well. A cheap name trading at 11x 2022 with a 8% modelled growth. Doing a lot of the right things to go in the right direction.
BUY
They have a good hybrid cloud strategy. Unlike some on Wall Street, he likes IBM. Their spin-off is fine.
BUY
It held up today when tech stocks plunged. It's in the process of selling off their slow/no-growth hardware businesses and doubling down on their software and especially their hybrid-cloud and AI operations. Today's investor meeting announced very bullish long-term targets: mid-single-digit revenue growth consistently and generate US$35 billion free cash flow over the next three years. Also, their legacy managed infrastructure business will be spun off into a separate business.
RISKY
Interesting story at these levels. Going to be splitting legacy divisions from higher growth. Will take a couple of quarters to show whether higher growth engine will provide more upside. Attractive dividend. Worth looking at for a trade.
DON'T BUY

It is starting to perk up a little. The Redhat acquisition is starting to flow through and show some growth. He still does not love IBM. It will fall into the bucket of 'Old Tech'. Continued share purchases will help with EPS, but revenue growth will continue to be difficult. He would look at other names like the FANG stocks. (Analysts’ price target is $148.00)

DON'T BUY
Very mature tech company that's having trouble finding growth. Technically sound, around the 50-day moving average. Hasn't outperformed the S&P since 2011. Cheap at 12.5x earnings. Revenue growth forecast is anemic at only about 1%. Future is murky. Yield is 4.6% and sustainable.
DON'T BUY

Cheap, but wouldn't buy it. The issue is they didn't have a lot of topline revenue growth, but that's changing now. Buying back shares, nice dividend of 4.4% or so, trading at 10-11x earnings. Too late to the cloud to be competitive. Better to own AMZN, MSFT or GOOG to play in the cloud.

BUY
It reports on Monday and is up 40% since its last earnings report They pay a 4.7% dividend yield so there's some margin on safety. They are returning to revenue growth, gross margins are improving, and they boast solid free cash flow that could be invested in cloud, or A.I. that drives bottom-line growth. They have 18% growth in the cloud business. No, it's not a slam dunk, and there's still work to be done, but at 13x forward earnings and approaching $130/share (long-term support) you can take a chance on this.
DON'T BUY

IBM continues to be slow. They bought Red Hat, but RH faces a lot of competition. Tuck-in acquisitions continue this year, but some concern him. They report Monday.

BUY
Hang onto it or even buy more. IBM is doing better than many people think and is solid.
BUY
The CEO is breaking the company in two and doing a great job.
DON'T BUY
Doesn't particularly like. Has never owned. Well behind the top players in the cloud. Not strong revenue growth. Grown bottom line only by buying back shares. In tech, you want to be in something that's growing and compounding at a better rate.
WATCH
It has been a restructure play for a number of years now. Cheap in technology is a dangerous issue sometimes because it can mean no growth. It is always on his radar screen. Others are more attractive in the short term.
COMMENT

They report Monday. The stock has been hanging in there and lately older tech names have been strong like Dell. Maybe IBM joins them.

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