Why IBM Is Poised to Outperform

Market-trouncing returns could be written in this 4-Star.

Brian D. Pacampara, CFA
Brian D. Pacampara, CFA
Mar 4, 2013 at 9:30PM
Technology and Telecom

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.

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