International Business Machines (NYSE: IBM) managed to beat expectations with its fourth-quarter report last week, and it provided guidance calling for revenue and earnings growth in 2020. The stock has been trending downward for years as the company's transformation failed to translate into sustainable growth. That painful period may finally be over.
While looking at IBM's stock chart doesn't foster much confidence, there are a few good reasons to buy the stock.
IBM loaded up its balance sheet with debt to acquire open source software company Red Hat. While there's no guarantee that the $34 billion deal won't end in write-offs and disappointment, Red Hat presents IBM with some significant growth opportunities.
Source Fool.com