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 $134.39, down 0.04% from the previous day, and has increased 1.41% in one year. It has overperformed other stocks in the Information Technology Services industry by 0.09 percentage points. IBM stock is currently +16.31% from its 52-week low of $115.55, and -12.28% from its 52-week high of $153.21.
At the moment, there are 904.13M IBM shares outstanding. The market capitalization of IBM is $121.51B. In the last 24 hours, 7.9M 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.
Our favorite brokerage: eToro
Based on our analysis, eToro is the best brokerage. eToro gives you:
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- Social investing: eToro offers a community of more than 20 million users worldwide. Talk to, learn from, and copy the unique crypto portfolios of other investors.
- Security: eToro is a regulated and licensed brokerage platform.
- Buy other financial assets: Such as ETFs and cryptocurrencies.
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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.
- Input your personal info to create a new trading account.
- Submit your info by hitting the "Create Account" button.
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 overvalued based on its P/E ratio of 94.64x, relative to Information Technology Services industry P/E ratio of 34.58x
- IBM could be overvalued based on its P/B ratio of 6.05x, relative to Information Technology Services industry P/B ratio of 3.65x
- IBM could be undervalued based on its PEG ratio of 0.21x
You can do additional valuation analysis on IBM's stock here.
IBM Financial Health
Negative Health Checks:
- IBM's operating cash flow of $9.01B allows it to safely service it's debt of $53.83B.
- Total IBM debt is higher than 5 years ago, relative to shareholder equity.
- IBM has a relatively high debt to equity ratio of 5.27.
- IBM profit margin has gone down from 11.2% to 2.7% in the past year.
- IBM earnings of $1.16B is not enough to cover its interest payments.
- There are more long-term liabilities than short-term assets on the IBM balance sheet.
- 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
Jim Suva, a bottom 7% analyst from Citigroup maintains IBM with a hold rating and raises their IBM price target from $140.00 to $145.00, on Jan 26, 2023.
Keith Bachman, a top 15% analyst from BMO Capital maintains IBM with a hold rating and raises their IBM price target from $148.00 to $155.00, on Jan 26, 2023.
David Grossman, a top 4% analyst from Stifel Nicolaus maintains IBM with a strong buy rating and raises their IBM price target from $140.00 to $158.00, on Jan 23, 2023.
Grossman raised his price target on International Business Machines Corporation by 12.9% ahead of the release of the company's Q4 and FY 2022 earnings report on 2023/01/25.
IBM has outperformed the S&P 500 over the trailing 12 months and the past three months, the analyst reminded investors.
"Execution should continue to improve into 2023 as newer programs, better leverage, and channel partnerships align go-to-market strategies and prioritize growth," Grossman said.
However, continuing macro uncertainty will probably be "the primary driver of near-term performance," the analyst cautioned.
Nevertheless. assumed continued operational improvements by IBM in the "current economic uncertainty" position the company as "a safe haven," Grossman concluded.
Yahoo Finance reports that the current Consensus EPS Estimate for IBM's Q4 is $3.59 which, if achieved, would represent a 7.2% gain over Q4 2021's $3.35.
For FY 2022, analysts are predicting that IBM will return EPS of $9.13, which would represent a 15.1% gain over FY 2021's $7.93.
Lisa Ellis, a bottom 43% analyst from Moffett Nathanson upgrades IBM to a hold rating and announces their IBM price target of $140.00, on Jan 19, 2023.
Erik Woodring, a bottom 5% analyst from Morgan Stanley downgrades IBM to a hold rating and lowers their IBM price target from $152.00 to $148.00, on Jan 18, 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 $1.26B. Over the past 5 year, IBM's earnings have increased by -34.75% per year. This was slower than the Information Technology Services industry average of 7.03%.
Last year, IBM revenue was $47.10B. Over the last 5 year, IBM's revenue has increased by -9.68% per year. This was slower than the Information Technology Services industry average of 10.86%.
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.
Gary D. Cohn, Vice Chairman of IBM, was the latest IBM insider to sell. They sold $301,946.91 worth of IBM shares on Jan 4, 2023.
Learn more about who owns IBM stock here.
Can I rely on IBM as an income stream?
IBM pays a dividend of 4.9%, compared to the Information Technology Services industry's average dividend yield of 1.89%. If you owned $1,000 of IBM stock, you would have received $49.04 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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