NEW YORK (Reuters) – NYSE:IBM Set for Gains After Slump. International Business Machines Corp (NYSE:IBM) could be the next blue-chip set to rally, according to a report in the financial publication Barron’s.
Analysts expect IBM to return to growth this quarter, Barron’s said in its Nov. 20 edition.
IBM reported higher quarterly revenue from social, mobile, analytics, cloud and security technology last month, and a long decline in gross profit has slowed already, Barron’s said.
Shares are trading at about 11 times this year’s earnings forecast, well below that of the S&P 500 (SPX), Barron’s said.
Traders will get the first clear sign that IBM is turning the corner in January, when the company will probably give its 2018 outlook, the publication said.
Even with just some upbeat news, investors could make 30 percent or more over the next year, Barron’s said.
IBM’s shares shot up 8.9 percent on Oct. 18, the day after the company reported quarterly results, but have since given back most of those gains.
The stock closed on Friday at $148.97 and is down 10.30% for the year to date.