Key Takeaways IBM partnered with S&P Global to embed its watsonx AI into supply chain and vendor selection platforms.The collaboration leverages S&P Global's data and IBM's AI to boost visibility and accelerate decisions.Upbeat estimate revisions and AI-driven growth trends signal optimism around IBM's profitability.International Business Machines Corporation (IBM) has inked a partnership with S&P Global Inc. (SPGI) to equip business enterprises with AI-powered tools for effective supply chain management. P ...

IBM and Amazon Web Services (AWS) have expanded their partnership to accelerate secure cloud adoption and digital transformation initiatives across the Middle East. The agreement will see IBM Consulting’s expertise in AI, hybrid cloud, and sector-specific solutions combined with AWS’ cloud infrastructure to support organisations in Saudi Arabia, UAE, and neighbouring markets. A central feature under consideration is a joint IBM-AWS Innovation Hub in Riyadh. This centre would provide enterprises and publ ...

It's time for investors to pay attention to IBM stock.Artificial intelligence (AI) has driven huge returns for investors, particularly in a select few large-cap stocks. Every stock in the "Magnificent Seven" has benefited from the technology, and some smaller players have also earned outsized returns.Amid such gains, investors may forget that some of the oldest tech stocks in existence have made notable pivots into AI. Knowing that, it might be time to pay particular attention to the comeback in Internation ...

Group 1 - Deep-pocketed investors have adopted a bullish approach towards IBM, indicating potential significant developments ahead [1] - Recent options activities for IBM show 35 extraordinary trades, with 48% of investors leaning bullish and 28% bearish [2] - The price window for IBM is being eyed between $200.0 and $400.0 based on volume and open interest analysis [3] Group 2 - Volume and open interest trends provide insights into liquidity and investor interest in IBM's options, particularly within the $200.0 to $400.0 strike price range over the last 30 days [4] - The largest options trades observed include multiple bullish call trades, with significant total trade prices and varying strike prices [9] - IBM, incorporated in 1911, operates in 175 countries and serves 95% of Fortune 500 companies, providing software, IT consulting, and hardware [10] Group 3 - An expert recently set an average target price of $280.0 for IBM, reflecting a cautious outlook [12] - An analyst from Bernstein has lowered its rating to Market Perform with a new price target of $280, indicating concerns about the stock's performance [13] - Currently, IBM's stock is trading at $271.25, down by -0.04%, with an anticipated earnings release in 29 days [15]

Core Viewpoint - Oracle's stock has surged 97% in six months, reaching a market cap of $855 billion, driven by cloud computing deals amid the AI boom, but concerns exist about the sustainability of this growth [1][2] - IBM, a long-time rival of Oracle, is building a significant AI presence and is currently undervalued with a market cap of $244 billion, potentially positioning itself to surpass Oracle in market value by 2030 [3][15] Group 1: Oracle's Performance - Oracle's stock performance is impressive but appears fragile, with high valuation multiples suggesting that investors expect continued growth [2] - The company is generating lower total sales compared to IBM, and its cash profits are declining into negative territory [8][15] - Oracle's AI capabilities are similar to IBM's, but it lacks the same level of integration and long-term client relationships [6][7] Group 2: IBM's Strategy and Growth - IBM is focusing on large enterprise clients and building robust AI systems that emphasize data integrity and security, which differentiates it from competitors [11][12] - The company's generative AI contracts have increased significantly from $2 billion in mid-2024 to $7.5 billion, indicating strong growth potential [14] - IBM's stock is trading at 20 times free cash flow and 22 times forward earnings, while Oracle's free cash flows are negative and its forward earnings are at 37 times, suggesting IBM is currently a better investment [15][16]

Group 1 - The article highlights the significance of companies with a long history of increasing dividend payouts, specifically mentioning "Dividend Champions" that have raised dividends for 25 years or more [1][2] - Notable companies in this category include McDonald's, Walmart, ExxonMobil, and Caterpillar, although some may face economic challenges in the near future [2] - Three recommended Dividend Champion stocks with strong revenue growth potential and analyst upside are International Business Machines (IBM), NextEra Energy, and Royal Gold [3] Group 2 - IBM has achieved 30 consecutive years of dividend increases and is evolving in the generative AI space with its watsonx platform, which has become a critical growth driver [5][6] - IBM's generative AI business generates over $7.5 billion in revenue, with expected revenue growth of 10.3% this year and 11.1% next year, alongside a current dividend yield of 2.7% [6] - NextEra Energy has 31 consecutive years of dividend increases and operates in two segments: Florida Power & Light, the largest utility in the U.S., and NextEra Energy Resources, focusing on renewable energy and power generation [7][9]

Core Insights - IBM is currently ranked 2 by Zacks, with earnings estimates trending higher, projecting $12 EPS for next year and nearly $13 for 2027 [1][2] - While not experiencing double-digit growth like the "Mag 7" companies, IBM is still growing sales in the mid-single digits and is projected to reach $70 billion in revenue next year, trading at just over 3X sales [2][19] - IBM remains a leader in technology innovation, particularly in quantum computing, with a recently unveiled 10-year roadmap for quantum innovation [3][4] Quantum Computing Innovations - IBM's quantum computing strategy focuses on building scalable, fault-tolerant systems, enhancing gate quality and error correction, and integrating quantum and classical computing [4][5] - The IBM Quantum Platform provides access to real quantum computers and features advanced hardware like the modular Quantum System Two, which includes Heron processors [5][6] - Upcoming innovations include modular quantum supercomputers like Starling and Blue Jay, aiming for thousands of logical qubits, and the Condor chip with 1,121 superconducting qubits [6] AI Solutions and Collaborations - IBM is focusing on smaller, domain-specific AI models through its watsonx platform, emphasizing reliability and enterprise utility [7][8] - The watsonx platform includes products for foundation models, generative AI, and a governance toolkit to support responsible AI workflows [9][10] - IBM continues to collaborate with companies like Salesforce to enhance AI-driven solutions [11][12]

Core Insights - IBM is focusing on smaller, domain-specific AI models that prioritize reliability, cost-efficiency, and practical enterprise utility [1][7] - The watsonx platform serves as the core technology for IBM's AI capabilities, offering tools for AI development, data storage, and governance [1][7] - IBM's AI collaborations with SAP and Salesforce aim to enhance productivity and facilitate business transformation [3][7] AI Solutions - IBM Concert is an AI-powered automation solution designed for complex IT operations, improving efficiency in patch management and security orchestration [2] - The solution reduces operational costs and optimizes patching plans through AI-driven recommendations based on system topology and business needs [2] Competitive Landscape - Other tech firms like Amazon and Microsoft are also advancing in the AI space, with Amazon's Bedrock platform and Microsoft's Agent Store enhancing their competitive positions [4][5] Financial Performance - IBM's stock has increased by 22.1% over the past year, outperforming the industry growth of 14.7% [6] - The company trades at a forward price-to-sales ratio of 3.24, which is below the industry average [8] Earnings Estimates - The Zacks Consensus Estimate for IBM's earnings for 2025 has been rising over the past 30 days, indicating positive sentiment [9]

Core Insights - International Business Machines Corporation (IBM) has experienced a stock price increase of 23.1% over the past year, outperforming the industry growth of 17.3%, driven by strong demand for hybrid cloud and artificial intelligence (AI) products [1][3][18] - Despite this growth, IBM's stock performance has lagged behind competitors such as Microsoft Corporation (MSFT) and Amazon.com, Inc. (AMZN), which saw gains of 23.4% and 29.6% respectively during the same period [1][8] Hybrid Cloud and AI Demand - IBM is well-positioned to benefit from robust demand trends in hybrid cloud and AI, which are expected to drive growth in its Software and Consulting segments [3][18] - The company anticipates that analytics, cloud computing, and security will contribute to long-term growth, supported by a better business mix and increased investment in growth opportunities [3][18] Collaboration with NVIDIA - IBM has extended its partnership with NVIDIA Corporation (NVDA) to enhance AI workloads and agentic AI applications, aiming to launch a content-aware storage (CAS) capability for its hybrid cloud infrastructure [4][5][8] - This collaboration will enable clients to transform business processes with agentic AI and manage compute-intensive AI workloads effectively [5][9] watsonx Technology Platform - IBM's watsonx is identified as the core technology platform for its AI capabilities, designed to enhance productivity through foundational models [10][18] - The watsonx platform includes three key products: watsonx.ai for foundation models and generative AI, watsonx.data for data storage, and watsonx.governance for responsible AI workflows [11][18] Cloud Security Enhancements - Neudesic, a subsidiary of IBM, has renewed its Cloud Security Specialization with Microsoft, enhancing IBM's hybrid cloud security capabilities [12][14] - This renewal emphasizes Neudesic's integration with the Microsoft ecosystem, leveraging the Zero Trust model to provide customized security solutions [13][14] Earnings Estimates and Valuation - IBM is experiencing an upward trend in earnings estimate revisions, with 2025 estimates increasing by 5.8% to $11.12 and 2026 estimates rising by 6.6% to $11.93 [15][18] - From a valuation perspective, IBM's shares trade at a price/sales ratio of 3.25, which is lower than the industry average of 3.73 but higher than its historical mean of 1.99 [17][18] Investment Proposition - With solid fundamentals and strong revenue-generating potential, IBM is viewed as a solid investment opportunity, particularly due to its focus on hybrid cloud and AI [18][19] - The company has a trailing four-quarter average earnings surprise of 6.3% and currently holds a Zacks Rank 2 (Buy), indicating positive investor sentiment and potential for further stock price appreciation [19]

Group 1: Market Overview - The S&P 500 is expected to have an above-average year in 2025 following a rapid recovery from a steep sell-off in April, with gains of over 20% in both 2023 and 2024 [1][2] Group 2: WM (Waste Management) - WM has outperformed the S&P 500 over the last five and ten years, despite the S&P's gains being driven by megacap tech stocks [4][6] - The company has a stable business model focused on waste management, which is essential as population and economic growth increase the demand for waste collection and processing [5][6] - WM reported a 29.9% total company margin under adjusted EBITDA, with a 7.1% growth in its legacy business and 19% overall revenue growth due to the acquisition of Stericycle [7][9] - The Stericycle acquisition, valued at $7.2 billion, enhances WM's position in the healthcare waste market, while a previous acquisition of Advanced Disposal for $4.6 billion expanded its geographic coverage [8][9] - WM has a premium valuation at 29.9 times forward earnings, supported by stable free cash flow used for dividends, stock repurchases, and reinvestment [9][10] - The company has raised its dividend for 22 consecutive years, with a recent 10% increase, resulting in a yield of 1.5% [10][11] Group 3: IBM (International Business Machines) - IBM, despite being over a century old, is characterized as a growth stock due to its strong exposure to AI, with a generative-AI book of business valued at $7.5 billion since 2023 [12][14] - The stock offers an attractive forward dividend yield of 2.6%, making it a solid option for passive income while benefiting from AI market growth [13][18] - IBM's five-year average payout ratio of 156% raises concerns, but its strong free cash flow covers the dividend, alleviating investor worries [16] Group 4: Delta Air Lines - Delta Air Lines offers a dividend with a current yield of 1.4% and is positioned as a growth stock, contrary to traditional views of airlines as cyclical businesses [19][20] - The company's focus on sustainable premium cabin revenue and loyalty programs reduces earnings cyclicality, contributing to long-term growth potential [20][21] - Delta is well-positioned to manage rising airport costs, as these costs represent a smaller portion of its business compared to low-cost carriers, and the airline industry is exhibiting more disciplined behavior [22]