4-Star Stocks Poised to Pop: IBM

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global IT solutions giant International Business Machines (NYS: IBM) has earned a respected four-star ranking.

With that in mind, let's take a closer look at IBM's business and see what CAPS investors are saying about the stock right now.

IBM facts

Headquarters (founded)Armonk, N.Y. (1910)
Market Cap$229.2 billion
IndustryIT consulting and other services
Trailing-12-Month Revenue$106.9 billion
ManagementCEO Virginia Rometty (since January 2012)
CFO Mark Loughridge (since July 2010)
Return on Capital (average, past 3 years)25.1%
Cash/Debt$12.0 billion / $31.3 billion
Dividend Yield1.5%
CompetitorsAccenture
Hewlett-Packard
Microsoft

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 91% of the 4,477 members who have rated IBM believe the stock will outperform the S&P 500 going forward.  

Just last month, one of those Fools, toaoyoda, succinctly summed up the bull case for our community:

This stock has surmounted the Big Company Complacency period ... and embarked on exploitation of its natural advantages ... They are big in the latest trends (e.g. cloud, linux, etc ) and are again the "go-to" choice for corporate deciders who want to play things safe and not be blindsided by better suppliers of services (and hardware).

It is so close to [$200 per share] that passing this milestone seems inevitable.

If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite a strong four-star rating, IBM may not be your top choice.

We've found another retailer we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Motley Fool owns shares of Microsoft. Motley Fool newsletter services have recommended buying shares of Microsoft and Accenture. Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners