Unveiling the Secrets of IBM’s Stock Performance

A Glimpse into IBM’s Stock History

  • IBM’s monthly chart showcases a series of all-time highs, with the last one hitting $215.90 in April 2013.
  • Despite trading above $215.90 on September 13th, 2024, the stock failed to close above the 12-year-old all-time high.
  • However, it’s just a matter of time before IBM breaks through this resistance.

    IBM’s Performance Analysis

  • According to blog technician @GarySMorrow, IBM has shown progress over the last 24 months.
  • Historically, IBM has had cycles of underperformance followed by sharp rallies after a decade of stagnation.
  • Notably, Lou Gerstner’s strategic moves revived IBM’s fortunes in the mid-1990s.

    Insight into IBM vs. the S&P 500

  • Performance Comparison: Check out how IBM has fared against the S&P 500 in terms of total returns from 2000 to September 13, 2024.
  • S&P 500 Data:
    • The forward 4-quarter estimate (FFQE) dropped to $259.80 from $260.60 last week.
    • The PE on the forward estimate stands at 21.6x.
    • Earnings yield decreased to 3.62% from previous levels.

      Anticipating Q3 ’24 Earnings Growth

  • Earnings Growth Trends:
    • Q1 ’24 and Q2 ’24 witnessed bottoming out of EPS growth rates early in the quarter.
    • Expect Q3 ’24 EPS growth to follow a similar pattern, peaking around the first 10 days of October ’24.

      Upcoming Fedex Reports

  • Fiscal Update: FedEx is set to report its fiscal Q1 ’25 results on September 19, 2024.
  • Strategic Moves: The company is undergoing restructuring under new leadership to enhance operational efficiency.

    FOMC Meeting and Market Expectations

  • Market speculations are rife about the outcome of the upcoming FOMC meeting.
  • With GDP growth projections and bond market dynamics in focus, the possibility of a rate cut remains uncertain.

    Closing Thoughts

  • While this information serves as insight, it’s essential to remember that past performance doesn’t guarantee future results.
  • Investors should assess their risk tolerance and adjust their portfolios accordingly.

    Thank you for exploring the world of finance with us.

    Analysis of the Rewritten Content

    Key Points Covered:

  • IBM’s stock performance history and future potential.
  • Comparison between IBM and the S&P 500.
  • Anticipated earnings growth trends in the market.
  • Updates on FedEx’s restructuring and upcoming reports.
  • Insights into the FOMC meeting and its potential impact on the market.

    Importance for Readers:

  • Understanding stock performance trends can help investors make informed decisions.
  • Comparing different asset classes like IBM and the S&P 500 aids in portfolio diversification.
  • Forecasting earnings growth provides insights into market expectations.
  • Updates on company restructuring like FedEx can impact stock valuations.
  • Awareness of central bank decisions like the FOMC meeting can guide investment strategies.

    How it Affects You:

  • As a reader, this content equips you with knowledge to navigate the financial landscape.
  • Insights into market dynamics can influence your investment choices.
  • Understanding historical trends and future projections aids in building a robust financial portfolio.
  • Awareness of corporate developments and macroeconomic factors can help you stay ahead in the market game.
Shares: