The Cheapest Stocks on the Dow: IBM
The following video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Isaac Pino discusses topics across the investing world.
In today's edition, Isaac takes a cue from Fool colleague Dan Dzombak, who recently described a time-tested tool for uncovering companies with above-average cash flows. Isaac applies this tool to identify the cheapest Dow components and finds IBM near the top of the list. For over a century, IBM's been a wise bet in the stock market and a wise bet for IT managers as well. As the saying goes, "Nobody ever got fired for buying IBM equipment." IBM became a solid, albeit sleepy stock during the decade after the tech bubble, but has since soared to new heights. Warren Buffett's been a buyer recently, and according to one metric, Big Blue could still be undervalued -- even around $200 per share.
IBM pivoted away from hardware recently to focus on services and information in the era of "big data." This emerging area of technology holds tremendous promise, and Fool analysts recently identified a leader in this arena that's set to soar in our free report, "The Only Stock You Need to Profit From the NEW Technology Revolution." Inside the report we'll reveal a company that has gone on to gains of more than 200% since first recommended by the Fool. Best of all, it still has room to run. You can click here to access your report -- it's totally free.
At the time this article was published Isaac Pinohas no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, Berkshire Hathaway , International Business Machines, and Microsoft.Motley Fool newsletter services recommendApple, Microsoft, andBerkshire Hathaway.Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.
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