IBM: Still Undervalued At All-Time Highs Yielding Around 3%
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IBM has transformed into a hybrid tech company with a focus on AI, hybrid cloud, automation, and quantum computing, resulting in a 36.30% share price increase in 2024. Strong Q3 results and growth potential make IBM's valuation attractive despite risks.
January 13, 2025 | 2:15 pm
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IBM's transformation into a hybrid tech company focusing on AI, hybrid cloud, automation, and quantum computing has led to a 36.30% share price increase in 2024. Strong Q3 results, including $6.6 billion in free cash flow and 10% software segment growth, highlight its profitability and growth potential. Despite risks like economic downturns and integration challenges, IBM's valuation remains attractive, trading at 19.5 times 2026 earnings.
IBM's strategic focus on AI and quantum computing has resulted in significant stock price appreciation. The company's strong Q3 results, including substantial free cash flow and software segment growth, underscore its profitability and growth potential. Despite potential risks, IBM's valuation remains attractive, suggesting a positive short-term impact on its stock price.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100