AK you better move faster
https://seekingalpha.com/article/4397172-quit-wasting-your-time-ibm
3 replies (most recent on top)
He'll change it soon. By month end. Just hold on tight.
The forward multiple has averaged 11 during this time, which is almost exactly where we trade
today on 2021 earnings. The spike to the right of this chart is the damage from the pandemic,
but on 2021 estimates, the valuation is much more in line. At any rate, 11 times earnings for IBM
isn’t cheap by any means, and that assumes you even believe the company can hit its current
targets, which I don’t. If I'm right, the stock is actually a bit expensive.
The bottom line is that IBM has a very long history of being too late to change and seeing
constantly eroding earnings estimates. The stock isn’t cheap today, which means investors are
once again too optimistic on the company’s prospects.
I see the stock as greatly underperforming the broader market this year, and I even see some
absolute downside should my lower EPS revision thesis continue to play out. There is literally no
reason to own this stock, and I think you should quit wasting your time and buy just about
anything else.
What's new? It will never change...