International Business Machines Corp (IBM)

IBM (NYSE:Computer Software & Services) EQUITY
$160.96
pos +1.50
+0.97%
Today's Range: 159.73 - 160.00 | IBM Avg Daily Volume: 4,912,000
Last Update: 03/05/15 - 9:51 AM EST
Volume: 110,945
YTD Performance: -0.64%
Open: $159.86
Previous Close: $159.42
52 Week Range: $149.52 - $199.21
Oustanding Shares: 988,424,172
Market Cap: 159,165,944,417
6-Month Chart
TheStreet Ratings Grade for IBM
Buy Hold Sell
A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F
TheStreet Ratings is the source for accurate ratings that you can rely upon to make sound, informed financial decisions. Click here to find out about our methodology.
Analysts Ratings
Historical Rec Current 1 Mo. Ago 2 Mo. Ago 3 Mo. Ago
Strong Buy 3 3 3 3
Moderate Buy 1 1 1 1
Hold 12 11 11 12
Moderate Sell 1 1 1 1
Strong Sell 1 1 1 1
Mean Rec. 2.78 2.76 2.76 2.78
Latest Dividend: 1.10
Latest Dividend Yield: 2.73%
Dividend Ex-Date: 02/06/15
Price Earnings Ratio: 10.33
Price Earnings Comparisons:
IBM Sector Avg. S&P 500
10.33 13.60 27.80
Price Performance History (%Change):
3 Mo 1 Yr 3 Y
-2.82% -14.49% -19.81%
GROWTH 12 Mo 3 Yr CAGR
Revenue -7.00 -0.13 -0.05
Net Income -27.10 -0.01 0.00
EPS -20.50 -0.10 -0.03
Earnings for IBM:
EBITDA 22.28B
Revenue 92.79B
Average Earnings Estimates
Qtr (03/15) Qtr (06/15) FY (12/15) FY (12/16)
Average Estimate $2.88 $3.97 $15.98 $16.87
Number of Analysts 13 12 15 14
High Estimate $3.20 $4.25 $16.25 $18.17
Low Estimate $2.69 $3.78 $15.75 $15.60
Prior Year $2.54 $4.32 $16.53 $15.98
Growth Rate (Year over Year) 13.57% -8.02% -3.34% 5.60%
Chart Benchmark Timeframe
Average Frequency Indicator Chart
Scale Symbol Comparison Bollinger Bands
By

Oilprice.com

 | Mar 4, 2015 | 7:00 AM EST

Can the Oracle of Omaha's reasoning be taken at face value?

By

Jim Cramer

 | Mar 2, 2015 | 3:45 PM EST

It's almost comical how welcoming it is these days.

By

Doug Kass

 | Mar 2, 2015 | 8:10 AM EST
My view is that Deere (DE) (a recent purchase) might trade a bit higher and IBM (IBM) a bit lower in the early going, based solely on Buffet's comments on CNBC's "Squawk Box."
By

Doug Kass

 | Mar 2, 2015 | 6:45 AM EST
Charlie and Warren distilled 50 years of success into one overriding principle: Buy wonderful businesses at fair prices and don't buy fair businesses at wonderful prices. Like everyone, Warren has the investment scars from buying low-quality businesses at "bargain" prices (he calls it cigar-butt buying) and he is not afraid to share them with us in this year's letter. Future growth rates (in percentage terms), while likely superior to the average corporation, will not be so great in relative terms. Warren writes: "The bad news is that Berkshire's long-term gains -- measured by percentages, not by dollars -- cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won't be great." (In other words, size matters, See my first question from the 2013 Annual Meeting). Warren and Charlie seem to consider Ajit Jain, the head of the company's resinsurance business and Greg Abel, who operates Berkshire's energy businesses, at the top of the list as Buffett's eventual successor. It will likely be at least another 10 years before Berkshire will be unable to efficiently reinvest its profits and float. At that time, excess earnings will likely be distributed through continued share buybacks (preferable only if it can be accomplished at a reasonable price) or through cash dividends. An explanation of the Berkshire System by Charlie Munger, near the end of the letter, provided the most value-added information and served as a summation of the important precepts that formed the foundation and the many successes at the company. Something Was Missing in This Year's Letter There was one big void in this year's commentary.  The letter failed to address the recently-sold ExxonMobil (XOM) investment and the potentially "breached moats," questionable secular business outlooks (my editorializing) and relatively weak share price performance at American Express (AXP), Coca-Cola (KO) and IBM (IBM). (I have spent a lot of time in my Diary discussing this.) Some Classic Quotes Every year the Berkshire letter is populated by some great lines. Here are some of my favorites from this year: "My successor will need one other particular strength: the ability to fight off the ABCs of business decay, which are arrogance, bureaucracy and complacency." (Buffett) "Berkshire's net worth would be at least $50 billion higher had it seized some opportunities it didn't recognize as virtually sure things." (Munger) "The "weirdly intense, contagious devotion" of shareholders, admirers and press played into why Berkshire did so well under Buffett." (Munger) "My leisurely pace in making sales (of Tesco) would prove expensive...Charlie calls this sort of behavior 'thumb-sucking'...Considering what my delay cost us, he is being kind." (Buffett) Buffett became so good at what he does because of an early "decision to limit his activities to a few kinds and to maximize his attention to them... A lot like Roger Federer has done at tennis." (Munger) "Though marginal businesses purchased at cheap prices may be attractive as short-term investments, they are the wrong foundation on which to build a large and enduring enterprise. Selecting a marriage partner clearly requires more demanding criteria than does dating." (Buffett) My Final Impression "Touch me It's so easy to leave me All alone with the memory Of my days in the sun If you touch me You'll understand what happiness is Look, a new day has begun." -- Cats, Memory Let me conclude by observing, at the risk of sounding like an armchair psychologist, that the letter was sentimental -- full of memories, stories and anecdotes -- reminding me of Betty Buckley's signature song in "Cats." In keeping with what I would describe as a reflection, it was conspicuously longer than prior letters at 43 pages and 25,000 words, compared with the previous year's 24 pages and 14,500 words. My impression was that Warren wanted us to quickly run to start reading page 24 ("Berkshire - Past, Present and Future"). Indeed, it is recommended to do so on the top of page three. His words on page 24-forward seemed to revel in the reminiscences and, no doubt, in the extraordinary nature of the successes.  It is not hard to understand why. Berkshire's growth over the last five decades has no equal in corporate history. Per-share book value has risen by a compounded rate of 19.4% annually over the last 50 years. The increase in Berkshire's per-share intrinsic value over the past 50 years is roughly equal to the 1,826,163% gain in market price of the company's share price over the same period. To me, Warren is finally admitting to gazing at the end of the road and is appropriately relishing in his delicious journey. In closing, I have read every one of Warren's Buffett's letter on the first Saturday of March over each of the last 50 years, ever since I was a teenager. This year's letter was the most d
By

Doug Kass

 | Mar 1, 2015 | 12:00 AM EST

Warren is finally admitting to gazing at the end of the road.

By

Doug Kass

 | Feb 28, 2015 | 8:42 PM EST
Charlie and Warren distilled 50 years of success into one overriding principle: Buy wonderful businesses at fair prices and don't buy fair businesses at wonderful prices. Like everyone, Warren has the investment scars from buying low-quality businesses at "bargain" prices (he calls it cigar-butt buying) and he is not afraid to share them with us in this year's letter. Future growth rates (in percentage terms), while likely superior to the average corporation, will not be so great in relative terms. Warren writes: "The bad news is that Berkshire's long-term gains -- measured by percentages, not by dollars -- cannot be dramatic and will not come close to those achieved in the past 50 years. The numbers have become too big. I think Berkshire will outperform the average American company, but our advantage, if any, won't be great." (In other words, size matters, See my first question from the 2013 Annual Meeting). Warren and Charlie seem to consider Ajit Jain, the head of the company's resinsurance business and Greg Abel, who operates Berkshire's energy businesses, at the top of the list as Buffett's eventual successor. It will likely be at least another 10 years before Berkshire will be unable to efficiently reinvest its profits and float. At that time, excess earnings will likely be distributed through continued share buybacks (preferable only if it can be accomplished at a reasonable price) or through cash dividends. An explanation of the Berkshire System by Charlie Munger, near the end of the letter, provided the most value-added information and served as a summation of the important precepts that formed the foundation and the many successes at the company. Something Was Missing in This Year's Letter There was one big void in this year's commentary.  The letter failed to address the recently-sold ExxonMobil (XOM) investment and the potentially "breached moats," questionable secular business outlooks (my editorializing) and relatively weak share price performance at American Express (AXP), Coca-Cola (KO) and IBM (IBM). (I have spent a lot of time in my Diary discussing this.) Some Classic Quotes Every year the Berkshire letter is populated by some great lines. Here are some of my favorites from this year: "My successor will need one other particular strength: the ability to fight off the ABCs of business decay, which are arrogance, bureaucracy and complacency." (Buffett) "Berkshire's net worth would be at least $50 billion higher had it seized some opportunities it didn't recognize as virtually sure things." (Munger) "The "weirdly intense, contagious devotion" of shareholders, admirers and press played into why Berkshire did so well under Buffett." (Munger) "My leisurely pace in making sales (of Tesco) would prove expensive...Charlie calls this sort of behavior 'thumb-sucking'...Considering what my delay cost us, he is being kind." (Buffett) Buffett became so good at what he does because of an early "decision to limit his activities to a few kinds and to maximize his attention to them... A lot like Roger Federer has done at tennis." (Munger) "Though marginal businesses purchased at cheap prices may be attractive as short-term investments, they are the wrong foundation on which to build a large and enduring enterprise. Selecting a marriage partner clearly requires more demanding criteria than does dating." (Buffett) My Final Impression "Touch me It's so easy to leave me All alone with the memory Of my days in the sun If you touch me You'll understand what happiness is Look, a new day has begun." -- Cats, Memory Let me conclude by observing, at the risk of sounding like an armchair psychologist, that the letter was sentimental -- full of memories, stories and anecdotes -- reminding me of Betty Buckley's signature song in "Cats." In keeping with what I would describe as a reflection, it was conspicuously longer than prior letters at 43 pages and 25,000 words, compared with the previous year's 24 pages and 14,500 words. My impression was that Warren wanted us to quickly run to start reading page 24 ("Berkshire - Past, Present and Future"). Indeed, it is recommended to do so on the top of page three. His words on page 24-forward seemed to revel in the reminiscences and, no doubt, in the extraordinary nature of the successes.  It is not hard to understand why. Berkshire's growth over the last five decades has no equal in corporate history. Per-share book value has risen by a compounded rate of 19.4% annually over the last 50 years. The increase in Berkshire's per-share intrinsic value over the past 50 years is roughly equal to the 1,826,163% gain in market price of the company's share price over the same period. To me, Warren is finally admitting to gazing at the end of the road and is appropriately relishing in his delicious journey. In closing, I have read every one of Warren's Buffett's letter on the first Saturday of March over each of the last 50 years, ever since I was a teenager. This year's letter was the most d
By

Jim Cramer

 | Feb 28, 2015 | 11:07 AM EST

I found the part on his Big Four holdings deeply wanting.

By

Jim Cramer

 | Feb 26, 2015 | 6:10 PM EST

As transition plays out, who's got game?

By

Doug Kass

 | Feb 26, 2015 | 3:23 PM EST
Caterpillar (CAT) looks like it has a rendezvous with $80 ahead of it. CAT remains on my Best Ideas List (short). For now, the market bends but doesn't break. I will stick to my notion of a "topping process." I am a $90.75 buyer of Deere (DE). I am working on a thesis why the U.S. auto manufacturers are destined for a period of underperformance and a protracted period of market share loss from foreign exchange weak exporters and from alternative manufacturers (e.g., Tesla (TSLA)) that are improving the "driving experience." The price of crude oil, as I feared, looks like it is destined to make a double bottom and to retest recent lows (-$2.37/barrel on the day). I missed shorting some more Apple (AAPL) as the shares never traded at my level of $131. I mentioned Ocwen (OCN) traded higher on word of a large naked short put trade. What happens is that the market maker on the other side is effectively short (long puts) and is forced to buy stock on a delta-adjusted basis to "even out." New low on TLT on the day and down by about $0.50 from short sale (hedge against muni funds). New daily low on IBM (IBM). Bank of America (BAC) breaks $16, avoid. All five of my regional bank holdings are higher today. Ali Blah Blah has missed out of the Nasdaq rip. Looks lower. (Remember, BABA is on my Surprise List.) I have raised my net short exposure today -- up to 15% net short. Is Warren Buffett becoming fearful while most others have become greedy? Stay tuned to Becky's interview with The Oracle on CNBC's "Squawk Box" on Monday.
By

Jim Cramer

 | Feb 26, 2015 | 2:31 PM EST

But there's just too much good news.

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