The last time I wrote about IBM (IBM) the stock was 42% undervalued. Since that time, the valuations have increased, and the company is now 35% undervalued. In this article, I forecast fiscal third quarter revenue. Also, there are some recent developments since the last time I published. Further, peer company comparisons of second quarter financial performance is included.
All of that said, I'm forecasting third quarter revenue to grow relative to the prior year. The increase in revenue could act as a catalyst to drive the share price toward its intrinsic value. A fiscal 2014 revenue increase could be the catalyst investors need to accumulate shares of IBM.
I'm going to review Accenture's earnings report this week as an indicator of potential revenue from IBM's services businesses. Also, IBM's hardware business may have continued its slump in the third quarter. With that in mind, I maintain my view that IBM's shares are undervalued and that the market will start to price in revenue growth. Read more
All of that said, I'm forecasting third quarter revenue to grow relative to the prior year. The increase in revenue could act as a catalyst to drive the share price toward its intrinsic value. A fiscal 2014 revenue increase could be the catalyst investors need to accumulate shares of IBM.
I'm going to review Accenture's earnings report this week as an indicator of potential revenue from IBM's services businesses. Also, IBM's hardware business may have continued its slump in the third quarter. With that in mind, I maintain my view that IBM's shares are undervalued and that the market will start to price in revenue growth. Read more
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