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Tech Expert: IBM Earnings Might Be 'Surprisingly Good'

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Sean Udall was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.

Sean Udall, a tech stock strategist expert, discussed International Business Machines Corp. (NYSE: IBM)'S second quarter print which is expected to be reported after Monday's closing bell.

Estimize is expecting the company (based on 104 estimates) to earn $3.80 per share on revenue of $20.970 billion. This compares to the Wall Street consensus estimate calling for the company to also earn $3.80 per share but on revenue of $21.001 billion.

Udall said that IBM's results could be "surprisingly good" as the company continues to ramp up its Watson division. The segment represents its entry in to the rapidly growing business intelligence and database architecture segments.

Related Link: IBM: Here's What Analysts Are Saying Ahead Of Monday's Report

Udall said that IBM's results in the past haven't been "terrible" but it has had a difficult time finding growth. As such, shares have stalled over the past two years. However, the company could take action including strategic acquisitions to fuel growth which could limit downside in the stock. In fact, if the company where to make a positive announcement in its print or conference call, shares could rebound to the $180 to $185 level, maybe even as high as $190.

"I'd have a hard time being short IBM going into the print," Udall concluded.

Latest Ratings for IBM

DateFirmActionFromTo
Oct 2020BMO CapitalMaintainsMarket Perform
Oct 2020Morgan StanleyMaintainsEqual-Weight
Jul 2020Argus ResearchUpgradesHoldBuy

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