4-Star Stocks Poised to Pop: IBM


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

$217.1 billion


IT consulting and other services

Trailing-12-Month Revenue

$104.56 billion


Chairman/CEO Samuel Palmisano

CFO Mark Loughridge

Return on Capital (Average, Past 3 Years)



$11.8 billion / $29.8 billion

Dividend Yield




Hewlett-Packard (NYS: HPQ)

Oracle (NAS: ORCL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 90% of the 4,184 members who have rated IBM believe the stock will outperform the S&P 500 going forward. These bulls include JBMiaCity and IRVINGP.

Just last month, JBMiaCity tapped the stock as a solid way to go for growth: "IBM is an innovation center much like [Apple] and will continue to outperform as it continues to drive the high tech markets and adapt its business model."

In fact, IBM's three-year average return on capital of 24.4% easily tops that of tech rivals like EMC (7.4%), HP (12.9%), and Oracle (15.3%).

CAPS member IRVINGP expands on the outperform argument:

IBM with its broad range of IT platforms, software, storage, and services to make solutions work well for governments, large multinational corporation, and middle to small enterprises make their business processes cost effective at a level surpassing any other solutions is in a position to continue to grow through the next decade.

If only they will rediscover the productivity, creativity and profit potential its own North American employees, then they will explode their revenue and profits beyond any other IT corporation.

What do you think about IBM, or any other stock for that matter? 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, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in Apple. The Fool owns shares of Apple, Oracle, and EMC. 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 Fool's disclosure policy always gets a perfect score.

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Originally published