With 11x Free Cash Flow and a 5.4% Dividend Yield, Is IBM Stock a Buy Now?
All of a sudden, blue-chip stock International Business Machines (NYSE: IBM) is looking like a buy again.
According to the latest data from S&P Global Market Intelligence, only six out of 16 analysts polled think IBM stock is a "buy," or likely to "outperform" the S&P 500 over the next year. (Most of the rest think IBM will just pace the S&P's gains.) But after reviewing IBM's Q3 earnings release Wednesday night, it kind of looks like they're wrong about that -- and that the bulls have the better of this argument.
Reporting earnings for fiscal Q3 2022 after close of trading Wednesday, IBM noted that revenue grew 6% year-over-year to $14.1 billion, and would have grown 15% but for unfavorable currency exchange rate fluctuations. IBM's consulting revenue grew 5%, its software sales were up 7%, and infrastructure revenue saw sales surge 15% despite currency rate headwinds.
Source Fool.com
