NYSE:IBM

IBM Common Stock (IBM)

284.84
-16.93 (5.61%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
274 watching
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Investor Insights
star iconJun 7, 2026, 12:00 am

This summary was created by AI, based on 24 opinions in the last 12 months.

IBM is experiencing a transformation driven by its hybrid cloud and AI initiatives, complemented by a strong consulting business. While the company has demonstrated solid revenue growth, experts indicate that it has reached a point of consolidation, with shares fluctuating around $240 after peaking over $300. Analysts point out the impressive earnings boost from AI and quantum computing efforts, expressing optimism about IBM's future performance despite some concerns about overvaluation at current levels. The consensus shows a mix of bullish sentiments with expectations of further upside potential, although some experts advocate for caution in the light of market competition. Overall, IBM remains a relevant player in the tech space, especially noted for its advancements in quantum computing.

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Consensus
Hold
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Valuation
Fair Value
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PAST TOP PICK
(A Top Pick Oct 08/19, Down 10%) He sold most in June but holds it in his income portfolio. It was a turn around and he hoped the company would be turned around but he moved on when that thesis was washed out.
COMMENT

IBM vs. CSCO Cisco missed the boat on cloud, not a great growth rate, revenue's down, nice dividend. For dividends, likes IBM better as its risk/reward is better.

RISKY
Change in leadership, and jury's still out. A trade, more than an investment.12-month target of $129. Buy around $100-105, sell around $125-130.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Aug 20/20, Down 6.6%)Stockchase Research Editor: Michael O'Reilly We are being disciplined and recommending to cover holdings in IBM after breaching the $115 stop-loss level. Although the company continues to make strides in developing its cloud based business, we see other better opportunities to pursue.
BUY
It may be their time to shine. When they spin off their cloud division, they may have it growing at 30% a year. He expects earnings tonight to be the start of good things before they split up. They are spinning out their legacy divisions.
HOLD
Dead money for several years. Underappreciated story. Modeling 12% EPS growth. Compelling price to book. Nice dividend. Margins high last quarter. Beat on top line and bottom line. Get paid to wait. Not a great deal of risk.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly The company doesn't leap to mind as a up and coming rising star, but it is a dividend aristocrat with a strong, and sustainable, dividend. The company is expanding its efforts in AI and cloud based services, including a recent partnership in Korea, where citizens will share health related surveys for policy makers. The company was recently upgraded to a target of $155 -- over 25% upside potentially. We would trade this with a stop loss at $115. Yield 5.26% (Analysts’ price target is $134.06)

COMMENT
The granddaddy of US tech stocks, but didn't adapt well to the digital age. It's had declining sales, though remains profitable. Not a growth stock. But it pays a safe 5% dividend.
DON'T BUY
He is not a fan. It trades at 11 times earnings. He thinks they are late to the club to the cloud business. They have only been buying back shares, rather than demonstrating real business growth. The new CEO is more cloud-based, but it will take time. There are better opportunities out there. Yield 5.6%
BUY

They purchased Red-hat and the market has not given them credit for this. He thinks it will lead to considerable upside. They buy back shares most years as well as raising the dividend. He thinks there is real value here. This one will not be hit as much by a correction.

WATCH
For the past twelve years the return on equity for IBM as well as the price to book was going up. But for the last six years the ROE has been falling and the price to book as fallen steadily. It has been struggling. They have to focus on profitability. The stock got down to a level he expected and he had a sell recommendation for the last 5 years. He is going to be watching to see if the company can hang on here.
WATCH

It is a tough one. He would like to see a quarter or two with Red Hat before deciding to go in. He is not rushing out.

BUY

IBM vs. MSFT Likes MSFT, but it's too expensive for its growth rate. IBM is interesting. Has momentum, growing in the cloud. RedHat's revenue accelerating. Incredibly cheap. Good dividend and pretty safe. Only thing is, it's not best in breed, which is where the money will go first. But it's a fine name.

DON'T BUY

This is a relatively cheap tech company, but that could be from the fact they have segments that have not been befitting from all the tech trends. They have a lot of legacy assets that are not growing as fast. He would not be a buyer. (Analysts’ price target is $150.33)

BUY
A solid company, though IBM has come off recently after a strong run. Has long-term potential and will be around in 10 years when some tech companies won't. This is a 5-10 year play as long as the valuation is good.
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