5 Best Consulting Stocks to Buy Now

4. International Business Machines Corp. (NYSE:IBM)

Number of Hedge Fund Holders: 43

International Business Machines Corp. (NYSE:IBM) has a dedicated business arm for consulting, known as IBM Consulting. The segment includes business transformation, technology consulting and application operations. During the fourth quarter, International Business Machines Corp. (NYSE:IBM)’s  tech consulting revenue jumped 10% on a constant currency basis.

43 hedge funds in Insider Monkey’s database of hedge funds have stakes in International Business Machines Corp. (NYSE:IBM) as of the end of the fourth quarter of 2022.

Diamond Hill Long-Short Fund made the following comment about International Business Machines Corporation (NYSE:IBM) in its Q4 2022 investor letter:

“New positions initiated in Q4 included shorts International Business Machines Corporation (NYSE:IBM), Acushnet Holdings (GOLF) and elf Beauty (ELF). Since diversified information technology company IBM’s 2019 acquisition of Red Hat, the company has aggressively pursued a hybrid cloud strategy. Though IBM and its new management team have made solid progress on this pivot, we believe the company still meaningfully lags the cloud hyperscalers and other cloud-native companies. Management has also laid out aggressive long-term targets for revenue growth and free cash flow, both of which we believe the company will struggle to achieve as it faces intense competition in its hybrid cloud business and structural headwinds in the company’s legacy businesses.”