IBM is coming back to a relevant area.
From a fundamental viewpoint, the software giant has qualities highlighted by Surperformance ratings. Its valuation remains attractive with a P/E ratio of 9.9 times 2015 estimates. Moreover, margins should keep rising for the next three years while growth will stabilize. The consensus is on hold but the average target price is set near USD 200.
Technically, the stock is in a consolidation phase and share prices have returned to the USD 185 area. This level could provide an opportunity to initiate a purchase in order to seek a technical recovery towards USD 194, the equitys recent highest level.
Therefore, a purchase will be set up at the current prices to benefit from the upcoming rally. Nonetheless, a stop will protect the trade in case of a downward movement under USD 183.