IBM Stock Analysis: Buy, Sell, or Hold?
IBM - International Business Machines Corporation
$223.65
1.91 (0.86%)
▲
5d:
+4.42%
30d:
-21.87%
90d:
-3.17%
HOLD
MODERATE Confidence
Analysis Updated: Jul 31, 2026 12:00 AM ET
Earnings: Oct 21, 2026
Smart Money Distribution
None View Scanner →
Strength: 7.7/10
Get Alerted When IBM Hits Your Target Price
Join 10,000+ traders who never miss a move
You're in! Check your email to confirm and set your target price.
100% Free
No spam, ever
Unsubscribe anytime
Interactive Price Chart (1 Month)
Loading chart...
Loading historical data...
Bottom Line:
📊 HOLD: IBM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
📊 HOLD: IBM shows mixed signals. Fine to hold existing positions. Not urgent to buy or sell.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$346.92
Based on 5.5% avg growth
INTRINSIC VALUE TODAY
$215.41
Trading above historical range
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 20.2x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: IBM is currently trading at $223.65, which is considered slightly low relative to its 30-day fair value range of $215.00 to $285.11. From a valuation perspective, the stock is trading at a discount (Forward PE: 17.0) compared to its historical average (20.2). Remarkably, the market is currently pricing in an annual earnings decline of 5.7% over the next few years. This aligns with recent fundamental challenges.
Technical Outlook: Technically, IBM is showing sideways momentum. Immediate support is located at $199.19, while resistance sits at $230.97.
Market Sentiment: IBM has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Technical Outlook: Technically, IBM is showing sideways momentum. Immediate support is located at $199.19, while resistance sits at $230.97.
Market Sentiment: IBM has a weak technical setup (25/100), with bearish trendlines and momentum suggesting caution for short-term entries. The stock is fairly positioned - fine to hold existing positions or accumulate slowly on dips, but not an urgent buy.
Quick Decision Summary
Current Position
SLIGHTLY LOW
Historical Trading Range
$215.00 -
$285.11
Company Quality Score
45/100
(HOLD)
Volume Confirmation
HIGH
Confidence Score
52.4%
Protect Your Profits
Holding IBM? Use our AI-powered strategies to protect your downside while keeping your long-term position.
View Profit Protection PlanAll Signals
- BULLISH: Price oversold vs 30-day range
- BEARISH: Weak technical setup (25/100)
- BULLISH: High volume confirmation
- NEUTRAL: Near Wall St target ($244.16)
Trading Range Analysis
30-Day Trading Range
$215.00 -
$285.11
Current vs Trading Range
SLIGHTLY LOW
Support & Resistance Levels
Support Level
$199.19
Resistance Level
$230.97
Current Trend
Sideways
Technical data as of
Jul 31, 2026
Fundamental Context
Forward P/E (Next Year Est.)
16.98
Wall Street Target
$244.16
(+9.2%)
Revenue Growth (YoY)
1.1%
Earnings Growth (YoY)
-1.8%
Profit Margin
15.5%
Valuation Discount vs History
-5.7% cheaper
PE vs Historical
17.0 vs 20.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.7%
(market-implied from PE analysis)
1-Year Target
$210.90
(-6%)
2-Year Target
$198.88
(-11%)
3-Year Target
$187.54
(-16%)
3-Yr Target (if PE normalizes)
(PE: 17→20)
$223.17
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 20.7, Growth: 6.9%)
$333.47
(+49%)
Base:
(SPY PE: 17.0, Growth: 6.9%)
$273.07
(+22%)
Bear:
(PE: 14.4, Growth: 6.9%)
$232.11
(+4%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (20x PE), but valuation improves significantly next year (17x PE) as earnings recover.
Trailing PE: 20.12 | Current EPS (TTM): $11.02
Bull Case
$291.61
(+30%)
Analyst growth 19.6%, PE expands to 22.1
Base Case
$265.10
(+19%)
Market implied 19.6%, PE stable at 20.1
Bear Case
$150.78
(-33%)
Severe decline -20.0%, PE contracts to 17.1
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 17.0 to 20.2
Stabilization Target:
$266.13
(+19.0%)
PE Expansion Potential:
+19.0%
Share & Embed Analysis
Last updated: August 03, 2026 12:40 AM ET
Data refreshes hourly during market hours. Next update: 1:40 AM
Data refreshes hourly during market hours. Next update: 1:40 AM
🔥 Top Stocks Breaking Out Now
| Ticker | Score | Recommendation | Change % |
|---|
Technical Signals Check
Is IBM showing a specific setup today?
Insider Activity (6 Months)
5
Buys
9
Sells
Net
INSIDERS SELLING
Recent Transactions
Ro Khanna
SELL
2026-03-30
Ro Khanna
SELL
2026-03-23
Gilbert Ray Cisneros, Jr.
SELL
2026-03-13
Top Rated Information Technology Services Stocks
Top-rated stocks in Information Technology Services by analyst ratings.
| Stock | Analyst Consensus | Analyst Target | Tradestie Score |
|---|---|---|---|
|
ACN
Accenture plc |
BUY
28 analysts |
$179 | 48 HOLD |
|
FIS
Fidelity National Inform… |
BUY
26 analysts |
$57 | 50 HOLD |
|
CIFR
Cipher Mining Inc |
STRONG BUY
16 analysts |
$33 | 55 HOLD |
|
GDS
GDS Holdings Ltd |
STRONG BUY
19 analysts |
$52 | 53 HOLD |
|
GLOB
Globant SA |
BUY
24 analysts |
$55 | 45 HOLD |
Advanced IBM Option Strategies
Professional options setups generated by AI based on today's IBM price and gamma walls.
