IBM could be set for gains after long slump

World
Europe

According to a report in financial publication Barron's, International Business Machines Corp. (IBM) could be the next blue-chip company with a rising valuation.

Some analysts expect IBM to return to growth this quarter, Barron’s said in its November 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.

IBM office building at Dubai Internet City in United Arab Emirates /VCG photo‍

Shares are trading at about 11 times this year's earnings forecast, well below that of the S&P 500 .SPX, Barron's said.

Investors could get their 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 October 18, the day after the company reported quarterly results, but have since given back most of those gains.

Source(s): Reuters