Is International Business Machines Corporation (IBM) the Best Dow Stock?
From Yahoo Finance: 2025-05-07 14:22:00
The Dow Jones Industrial Average is a benchmark index consisting of the top 30 US companies, representing the strength of the US economy. International Business Machines Corporation (IBM) is among the top 5 most shorted stocks on the Dow, with 60 hedge fund holders and a short interest of 2.27% as of April 30, 2025. IBM plans to invest $150 billion in the US over the next five years to accelerate manufacturing and technology innovation, with a focus on research and development for mainframe and quantum computers. Despite concerns about potential negative effects of the U.S. Department of Government Efficiency (DOGE) on its Consulting business, IBM reported better-than-expected first-quarter results, leading to a 5% drop in its shares. The company ranks 30th on the list of best and worst Dow stocks, with management reiterating full-year guidance of 5% revenue growth and $13.5 billion free cash flow generation. While IBM shows potential as an investment, some AI stocks are believed to offer greater returns within a shorter time frame. An AI stock has already increased since the beginning of 2025, while popular AI stocks experienced losses of around 25%. For those interested in a promising AI stock trading at less than 5 times its earnings, a report on the cheapest AI stock is available for review.
Read more at Yahoo Finance: Is International Business Machines Corporation (IBM) the Best Dow Stock?