How to Buy IBM Stock
International Business Machines Corp
IBM is a information technology service company located in New York, United States, which is part of the Technology sector, and is traded under the ticker IBM on the NYSE exchange.
IBM stock last closed at $161.96, up 1.09% from the previous day, and has increased 9.6% in one year. It has overperformed other stocks in the Information Technology Services industry by 0.06 percentage points. IBM stock is currently +34.35% from its 52-week low of $120.55, and -0.51% from its 52-week high of $162.79.
At the moment, there are 913.12M IBM shares outstanding. The market capitalization of IBM is $147.89B. In the last 24 hours, 4.55M IBM shares were traded.
How to Buy IBM Stock
Wondering how to invest in IBM stock? Here's how.
- Decide where to buy IBM stock: You need to pick an online brokerage, but don't worry - we've analyzed dozens of online brokerages and apps to help you determine where to buy IBM stock.
- Sign up for your brokerage account: Sign up for 0% fee trading with the highest-rated brokerage we've found.
- Deposit funds into your brokerage account: Pick your method of payment and add your details.
- Evaluate IBM stock: The IBM ticker symbol is IBM. Is IBM stock a good investment? Should you buy shares of IBM? How do IBM's underlying business fundamentals look? Do top analysts think IBM is a good buy? Why has IBM's stock price moved recently? (Hint: Our stock market analysis tools can help you understand if IBM is a good stock to buy).
- Make your IBM trade: Decide if you will purchase IBM shares at the current market price or use a limit order to buy IBM stock at a given price.
- Get the latest news on your IBM investment: Create a watchlist to watch your position in IBM shares.
Step 1: Decide where to buy IBM stock
You will need a brokerage account to access the NYSE market and buy IBM shares.
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Open eToro AccountStep 2: Sign up for your brokerage account
Now that you've picked the best brokerage, you need to fill out some personal information so you can invest in IBM today.
How to Start a New Investment Account on eToro
- Click here to get started.eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
- Input your personal info to create a new trading account.
- Submit your info by hitting the "Create Account" button. Get started with eToro today
Step 3: Deposit funds into your brokerage account
Now that you've finished signing up on our top ranked stock trading app, you can securely and quickly fund your account:
Check out the video below for more details depositing money into your brokerage account.
Step 4: Evaluate IBM stock
After you have selected the best place to buy IBM stock, it's crucial to analyze their stock before you invest, so you actually understand the risk as well as the opportunity.
IBM shares at a glance
IBM Due Diligence Checks
WallStreetZen was built to help everyday investors do more in-depth fundamental analysis quickly.
You can see all of the due diligence checks on IBM's stock page.
Is IBM stock undervalued?
You can use a variety of different financial metrics, analyses, models, and charts to gauge IBM's true value.
Using relative valuations methods:
- IBM may be undervalued based on its P/E ratio of 21.23x, relative to Information Technology Services industry P/E ratio of 26.24x
- IBM could be overvalued based on its P/B ratio of 6.41x, relative to Information Technology Services industry P/B ratio of 4.4x
- IBM could be overvalued based on its PEG ratio of 1.72x
You can do additional valuation analysis on IBM's stock here.
IBM Financial Health
Positive Health Checks:
- IBM earnings of $9.59B is not enough to cover its interest payments.
- IBM's operating cash flow of $13.43B allows it to safely service it's debt of $58.53B.
- Total IBM debt is lower than 5 years ago, relative to shareholder equity.
- IBM profit margin has gone up from 2.1% to 11.3% in the past year.
Negative Health Checks:
- There are more long-term liabilities than short-term assets on the IBM balance sheet.
- IBM has a relatively high debt to equity ratio of 4.6.
- There are more short-term liabilities than short-term assets on the IBM balance sheet.
Is it a good time to buy IBM stock, according to Wall Street analysts?
Out of 9 Wall Street analysts who track IBM, the consensus analyst rating on IBM is a Buy
It's important to keep in mind that analyst ratings are not recommendations, nor are they investment advice.
Latest IBM Analyst Forecasts
Wamsi Mohan, a top 4% analyst from Bank of America maintains IBM with a strong buy rating and raises their IBM price target from $152.00 to $160.00, on Jul 20, 2023.
Bank of America's Wamsi Mohan raised their price target on International Business Machines Corp (NYSE: IBM) by 5.26% from $152.00 to $160.00 on 2023/07/20. The analyst maintained their Strong Buy rating on the stock.
The analyst reassessed following a review of the company's Q2 2023 earnings report, released on 2023/07/19, and participation in the earnings call.
Management maintained its FY guidance and noted early traction in AI, Mohan said, noting, however, that explicit guidance on AI was not provided.
"The stock is not discounting any change in the trajectory of revenue or profits and if the company delivers on metrics similar to RedHat/OpenShift, it could see 2 points of growth, perhaps not all incremental, to Consulting by FY 2025 and 1 point of Software growth, the analyst estimated.
Footnotes
For Q2 2023, IBM reported:
- EPS of $2.18, which beat the Refinitiv consensus estimate of $2.01 but missed, by 5.6%, Q2 2022's $2.31.
- Revenue of $15.48B, which missed the Refinitiv consensus estimate of $15.58B and Q2 2022's $15.54B by 0.06%.
- Gross margin of 54.9%, up from Q2 2022's 53.4%.
- Free cash flow of $2.1B, flat Y/Y.
For FY 2023, management guided:
- Revenue growth of 3% to 5%.
- Free cash flow of $10.5 billion in free cash flow, up more than $1B Y/Y.
Chairman & CEO Arvind Krishna commented: “Organizations are using our hybrid cloud and AI technology, and our consulting capabilities, to transform their operations.
"We continue to respond to the needs of our clients who seek trusted, enterprise AI solutions, and we are particularly excited about the response to the recently launched watsonx AI platform.
"Finally, we remain confident in our revenue and free cash flow growth expectations for the full year.”
David Grossman, a top 9% analyst from Stifel Nicolaus maintains IBM with a strong buy rating and raises their IBM price target from $140.00 to $144.00, on Jul 20, 2023.
Shannon Cross, a top 11% analyst from Credit Suisse reiterates IBM with a buy rating and maintains their IBM price target from $162.00 to $162.00, on Jul 11, 2023.
Brian Essex, a top 17% analyst from JP Morgan initiates coverage on IBM with a hold rating and announces their IBM price target of $145.00, on Jul 7, 2023.
You can dig deeper into what analysts are saying on the IBM stock forecast page.
IBM Momentum
IBM Revenue
Last year, IBM earnings were $6.92B. Over the past 5 year, IBM's earnings have increased by 3.94% per year. This was slower than the Information Technology Services industry average of 9.13%.
Last year, IBM revenue was $61.17B. Over the last 5 year, IBM's revenue has increased by -5.31% per year. This was slower than the Information Technology Services industry average of 8.96%.
You can analyze IBM's earnings and revenue performance here.
Are IBM executives and large shareholders buying or selling the stock?
Over the last 12 months, insiders at IBM have sold more shares than they have bought.
Nickle Jaclyn Lamoreaux, Senior Vice President of IBM, was the latest IBM insider to sell. They sold $299,837.72 worth of IBM shares on Aug 18, 2023.
Learn more about who owns IBM stock here.
Can I rely on IBM as an income stream?
IBM pays a dividend of 4.09%, compared to the Information Technology Services industry's average dividend yield of 2.69%. If you owned $1,000 of IBM stock, you would have received $40.94 last year.
IBM dividend payments have consistently grown over the past decade and have remained stable.
Dig into more analysis about IBM dividend yield and history here.
What others are saying about IBM
One of the reasons eToro is our top-rated brokerage is because of its social trading community.
Click below to find out what other investors have to say.
Step 5: Make your IBM trade
You have two primary types of orders:
- Market order: A market order is an order to buy or sell a security at the best price on the market.
Market orders are generally fine for most investors. - Limit order: A limit order enables you to buy or sell a security at a specific price (or better).
If you want to make sure you're buying or selling at a given price, place a limit order.
Hit the Open Trade button and your broker will place your order.
If you want more help buying stocks on eToro, watch the how to video below:
Step 6: Get the latest news on your IBM investment
Now that you own some IBM shares, you'll want to keep up with your new stock purchase.
Start a watchlist to get alerted to the latest events about your IBM stock.
IBM Feed
How to Buy Stock in IBM
To summarize, here are the 6 steps to buy stock in IBM:
- Decide where to buy IBM stock
- Sign up for your brokerage account
- Deposit funds into your brokerage account
- Evaluate IBM stock
- Make your IBM trade
- Get the latest news on your IBM investment
If you are looking for a brokerage account, eToro is our favorite option.
Get Started with eToro TodayIf you would like to keep tabs on your investment in IBM, add IBM to your watchlist below.
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