International Business Machines Corporation (NYSE:IBM) is one of the stocks in focus as Jim Cramer shared his weekly game plan. Cramer said that the stock is going to receive the same market reaction as the previous quarter, as he commented:
Last quarter, IBM reported a number that left the Street rankled, but the stock quickly recovered. I could see it doing the exact same thing this time as traders dominate the stock of IBM. I don’t know why. And they don’t seem to understand what an amazing company they own or that they rent.
Credit: IBM
International Business Machines Corporation (NYSE:IBM) provides software, consulting, and cloud and on-site technology solutions, along with financing to help clients use its products. Cramer shared his thoughts on the stock during the January 14 episode, as he said:
Let’s take them one by one, starting with IBM, which has become an incredibly strong performer with a stock that’s nearly tripled since late 2022 when it broke free from its… all-time highs. It’s also rallied over 40% over the past 12 months. Horse. Take a look at all the daily charts here because this paints a very encouraging picture.
First, Lang (chartist Bob Lang) points out that IBM has always faced challenges from the new line of tech… But IBM stood tall in the face of change and transformed itself into a juggernaut. They’ve got terrific hybrid cloud and AI businesses, a very strong consulting business that’s also bringing in a ton of AI, and yes, they’ve got quantum computing. Even better, at this point, IBM has been putting up its strongest sales growth in years. Their CEO, Arvind Krishna, is top-notch, and you know what? I think he sees the future better than almost all CEOs, not just in tech… Lang points out that IBM has broken out above its 50-day moving average… with force this week. The stock’s now at $309… We’re witnessing the next leg higher. Not too late to buy IBM… When you look at the moving average convergence divergence… IBM just made what we call a bullish crossover… When that happens, this is one of the most reliably positive signals out there.
At the same time, there’s the on-balance volume… As you can see with IBM, the on-balance volume line just keeps making new highs. Even better, the relative strength… is still a long way from being overbought… When IBM got overbought in the fall, it temporarily lost its mojo, but it can really rally a good bit now because the relative strength index is saying it can go to higher levels. That’s where it tends to stall out. I liked the last quarter from IBM very much, and I bet Krishna can deliver again when the company reports later this month. It’s inexpensive relative to its growth rate and runs very lean as Krishna runs a very tight ship.
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Disclosure: None. This article is originally published at Insider Monkey.
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