One of the most company liked by investors is IBM. International Business Machines Corporation is an American multinational technology company headquartered in Armonk, New York, with operations in over 170 countries.
The company has shown resilience in recent years after a continued and sustained downtrend from highs of $215 a share to lows of around $110. We have since seen a sharp rejection of the $110 price handle and with IBM beating earning estimates across the board many are of the belief that the turnaround strategy is starting to bear fruit.
Given the current surge in pricing we see more value on getting in on any significant pullbacks. Upside potential is huge as we should be on target to create new highs past the $215 handle in the long term. Any ideas of short position would be for a limited time as any break below $130 could see us come down to retest the $110 handle where we previously bounced by forming a double bottom as well.
IBM had begun focusing on a new strategy in 2018 that prioritized Cloud storage and machine learning which at this stage are among the fastest growing industries globally. This bodes well for the long term outlook of the company post pandemic. We will undoubtedly be looking to add this to our portfolio at the best possible price on offer.