Why IBM Is Poised to Outperform

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 (NYSE: IBM  ) has earned a respected four-star ranking.

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

IBM facts

Headquarters (founded)

Armonk, N.Y. (1910)

Market Cap

$227.3 billion

Industry

IT consulting and other services

Trailing-12-Month Revenue

$104.5 billion

Management

Chairman/CEO Virginia Rometty

CFO Mark Loughridge

Return on Capital (average, past 3 years)

25.8%

Cash/Debt

$11.1 billion / $33.3 billion

Dividend Yield

1.7%

Competitors

Accenture

Hewlett-Packard

Microsoft

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

On CAPS, 91% of the 4,738 members who have rated IBM believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, ValueInvestor747, tapped the stock as particularly solid long-term opportunity:

Have held this stock my entire adult life and have yet to be disappointed. IBM has a knack for adapting to market conditions and when all the doubters are loudest, they impress. They have continually put up great numbers and grown their dividend. Have made over 200% on this personally (new to CAPS) and I have no plans to abandon ship now.

If you want market-beating returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, IBM may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." 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 TrackPoisedTo CAPS account.


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