IBM Stock Uplifting Gains, Is the ideal time to create long positions?

International Business Machines Corporation (NYSE: IBM) is an American Multinational Company, incorporated in 1911, known for providing integrated solutions leveraging information technology and knowledge of business processes. With a huge market cap of $132.95 Billion, it is a leading company in the computer services industry.

Historical Performance & Financials

Earlier, IBM has recorded a gross profit margin of 53% (TTM), and the company has generated substantial turnover in recent years. In the recent quarter( Q3), the company registered 1.58B (YoY) in free cash flow. Also, the liabilities fell by 13% to 105.17B. The latest earnings report created a positive sentiment among investors, pushing up the price with great momentum. The share price bounced by 25% after the Q3 update of 2022.

IBM on charts

On the daily chart, IBM stock is now in an uptrend and trading inside a rising parallel channel. The breakout of the $145 range makes the bulls charge the muscles. Furthermore, the recent covering gave us fresh entry for the early investors willing to make longs.

IBM’s stock price is now trading above key moving averages, and all eyes are on the near-term target of $155 and a positional target of $170.

The price march opens a trajectory of a positional move, laying the price to $180 in the further sessions. IBM stock performance from the previous month confirms that the bulls are active and have retrieved momentum.

Analysts View & Expectations

In the Q3 2022 report, the company reported revenue growth of 6% (YoY). Moreover, the company reported a growth of 7.5% in the software segment, while an upside of 14.8% was registered in the infrastructure segment.

In the upcoming quarter, the income estimate is $3.58 Billion, and the revenue estimate is $16.12 Billion.

IBM stock has been performing exceptionally in recent months and is rewarding investors.

According to Analysts, most brokerage firms rate IBM as ‘outperforming.’ While few advise holding the stock.

Conclusion:

IBM stock is looking good at the current price level for the short term. Besides that, as per the valuation, the stock was trading at the P/B ratio of 6.35%, reflecting a good buy candidate.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing