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Why IBM Still Looks Solid

By Brian D. Pacampara, CFA - Apr 10, 2013 at 11:06AM

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

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 (IBM -2.47%) has earned a coveted 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

$233.2 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

$11.2 billion / $33.3 billion

Dividend Yield

1.6%

Competitors

Accenture

Hewlett-Packard 

Microsoft

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

On CAPS, 91% of the 4,769 members who have rated IBM believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, Motley Fool Co-Founder David Gardner (TMFSpiffyPop), tapped IBM as a particularly solid selection:

Nobody ever went wrong buying IBM (stock, for the long term). An amazing company by almost any standard I can think of. That said, this won't be hitting my Stock Advisor scorecard anytime soon, I don't think, as there are just too many other companies I can foresee outperforming this one. But it's still darn good enough for one of my green thumbs! Outperform.

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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Stocks Mentioned

International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$129.66 (-2.47%) $-3.28
HP Inc. Stock Quote
HP Inc.
HPQ
$35.73 (-3.04%) $-1.12
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$253.14 (-0.37%) $0.94
Accenture plc Stock Quote
Accenture plc
ACN
$273.61 (-0.20%) $0.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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