Is IBM stock a good value investment?
In "Why IBM attracts value investors," Money magazine says that IBM stock is undervalued. Short term, "analysts say second-quarter results [to be reported July 18] may be disappointing." But longer term, "analysts project that IBM's earnings can grow at a compound annual rate of around 11 percent over the next five years."
Many (most?) IBM employees are also shareholders, thanks to the employee stock purchase plan (ESPP). Because IBM is part of the Dow Jones Industrial Average, lots of Americans (and people in other countries?) are IBM shareholders through 401(k)s and mutual funds. So let's hope Money turns out to be correct.
IBM Stock: A good value investment?