Big Blue Signals Green
International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. [PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'IBM'" symbolprices="179" div_align="right"]
IBM lowered guidance for 2013 so the shares have declined to a reasonable valuation that is in the low end of the historical valuation range. IBM is a TOP 25 Purple Chip due to its stable and predictable earnings progression.
It has been some time since Top-25 IBM hit a low valuation signal.
LOW VALUATION IN IBM AT $190.50 (IBM, $USD 190.35) FULL POSITION
PURPLE CHIPS TARGET: $225.00 POSITION SIZE: FULL P/E: 12.3X DIV: 2.0% MKT CAP: $211B Ent. Val: $233B RETURN ON CAPITAL: 110% EARNINGS YIELD: 9.3% 5 YR EPS Growth rate: 15% CURRENT EPS: $15.52 2014 (EST) EPS: $18.35 2015 (EST) EPS: $20.23
