International Business Machines Corp. (NYSE: IBM) was once one of the largest personal computer manufacturers in the world. Today, its focus is on technology innovation and services related to business processes. It offers everything from cloud software and fully integrated systems to security and I.T. infrastructure solutions. The company has also emerged as a leader in blockchain technology.
Blockchain is the technology that powers BitCoin and other cryptocurrencies. IBM uses blockchain to create highly efficient supply chain management solutions for shipping companies. The company has partnered with Maersk, one of the world’s largest container shippers, to create the platform TradeLens. Last year, MSC Mediterranean and CMA CGM, two other high-profile container shipping firms, signed up to fully integrate their supply chain management into TradeLens.
IBM has strong potential to revolutionize the I.T. aspect of global shipping. With the support of a market leader like Maersk, it will be easier to convince new clients to come on board. Beyond this, IBM is profitable, having finished 2020 with a gross margin of 47.34% and an EBITDA margin of 22.24%. With an average target price of $136.93 and a high-end target of $165.00, there could be strong upsides for new investors in 2021.
Key Data:
- 1 Year Price Growth: -5.55%
- YTD Price Growth: -2.80%
- 3 Month Price Growth: -1.01%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.