International Business Machines Corporation, #IBM [NYSE]
Technologies, IT technologies, USA

Financial performance:
Индекс – DJIA, S&P 500;
Beta – 0.62;
Capitalization - 177.42 В;
Assets profitability - 11.9%;
Revenue 10.81B;
Average volume – 14.76 М;
P/E - 11.52;
ATR – 3.21.

Analytical review:

  • The company's 2-week growth has exceeded 5%. The quotes are expected to rise further;
  • The Company has the biggest capitalization in the IT technologies sector among the issuers listed on the US stock market;
  • According to the latest report on the first quarter of the fiscal year 2016, the company's revenue amounted to 18.68 billion USD, which exceeds market expectations of 18.30 billion USD. EPS factor (earning per share) equals 2.35 USD as compared with a forecast of 2.09 USD;
  • The company has announced a partnership with CiscoSystems (#CSCO) recently. The technological giants plan to work jointly on the Internet of Things project (IoT). The program will be intended for instant data transmission and feedback in various industries, including oil and gas, production, mining and transportation of natural resources;
  • P/E ratio suggests the probability of the company's cost growth. IBM's P/E Ratio (11.52) is lower than the average P/E in the industry (21.89) and in the sector (17.35), which may suggest a further growth of the company's quotes;
  • IBM would be appropriate for realization of long-term investment strategies The company regularly pays out dividends to its shareholders. The company's dividend profitability (3.66%) is much higher than competitors' (1.83%).

Summary:

  • The company's recent report proves that the company's management has been working efficiently. IBM's results exceede market expectations. The technological giant's growth potential is quite significant. The analysis of multipliers indicates the probability of the company's capitalization growth;
  • Thus, we expect that the company's quotes will be rising in the nearest future.

Trading tips for International Business Machines Corporation's CFDs

Key levels:
Support levels: 151.90 USD, 150.55 USD
Resistance levels: 153.55 USD

Medium-term trading, H1
The issuer is currently trading between the support and resistance levels of 151.90/153.55 USD. Once a resistance level of 153.55 USD is broken and tested, and relevant confirming signals appear (PriceAction patterns, for example), we recommend searching for market entry points to open long positions. Risk per trade: no more than 2% of equity. Stop order shall be placed a bit below the signal line. We recommend that prospective profits should be fixed partly at the levels of 155.50 USD, 158.00 USD, and 161.00 USD, with Trailing Stop applied.

Medium-term trading, H1
Medium-term trading, H1

Short-term trading, M15
The issuer is currently trading between the local support and resistance levels of 152.45/153.55 USD. We advise you to search for market entry points once these levels are broken and tested. Positions shall be opened in the direction of the signal line and the nearest support/resistance level. Risk per trade: no more than 3% of equity. Stop Order shall be placed a bit above/below the signal line. Prospective profits shall be fixed partly, at 50%, 30%, and 20% of a prospective fluctuation, with Trailing Stop applied.

Short-term trading, M15
Short-term trading, M15




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