From Nasdaq: 2024-04-03 00:09:47

IBM stock has risen by over 17% year-to-date, outperforming Nasdaq-100. Q4 2023 revenue was $17.4 billion with earnings at $3.87/share. IBM is focusing on AI, with Watsonx experiencing rising demand. Software sales grew by 5%, driven by Red Hat products. IBM is cutting costs by $3 billion in 2024.

IBM stock has seen a 50% increase since early 2021. While returns were 6% in 2021, 5% in 2022, and 16% in 2023, IBM underperformed the S&P 500. With a market price of $191/share, IBM trades at 20x consensus 2024 earnings and is valued at $177/share. IBM’s near-term growth is expected to be muted.

IBM has outperformed the S&P 500 over recent years. With a focus on AI, cloud computing, and automation, IBM aims for low double-digit revenue growth in 2024 and 2025. Despite a high market price, IBM faces uncertainties. Trefis Reinforced Value Portfolio provides detailed insights on IBM’s valuation.



Read more at Nasdaq: Up 17% This Year, Why Is IBM Stock Outperforming?