Jim Cramer: IBM stock is a buy following strong Q1 results

0

Jim Cramer: IBM stock is a buy following strong Q1 results

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
Apr 20, 2022

IBM reported strong Q1 results and gave upbeat full-year guidance.

CNBC’s Jim Cramer explains why he’s bullish on IBM Corp stock.

Shares of the American IT company are roughly flat year-to-date.

A day after IBM Corp (NYSE: IBM) reported strong results for its fiscal first quarter, CNBC’s Jim Cramer says the stock that’s roughly flat year-to-date is a buy.

Cramer is bullish on IBM/McDonald’s partnership

More than the quarterly performance, Cramer dubs IBM’s strategic partnership with McDonald’s a promising reason to hop onto the stock. This morning on “Squawk on the Street”, he said:


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

What they’re doing is using artificial intelligence to make it so that the orders are taken basically by IBM. They save two heads; they have the same level of success that individuals do. And franchises basically save a fortune.

At a PE multiple of 27, the influential investor sees IBM a fairly inexpensive stock to buy. Last week, Morgan Stanley said IBM was a place to hide amidst the growing macro risks.

IBM offered upbeat guidance for the full year

The information technology company also gave pleasing guidance for the full financial year last night. According to Cramer, there was a lot to like in IBM’s quarterly numbers. He noted:

Security was up 8.0%, that was up 2.0% before, that surprised me. Consulting was good, those who say it wasn’t, are missing the point. Software exceeded the street nicely. So, people who are negative on IBM, they’re going to miss the bus.

IBM is restructuring to benefit from artificial intelligence and hybrid cloud momentum. In 2021, it bought 15 companies to strengthen its footprint in this space.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro

10/10

68% of retail CFD accounts lose money

Visit site

Industries


North America


Stocks & Shares


Technology


USA


World

Generated by Feedzy