IBM Nails Earnings But May Be Overbought In The Near Term
Steve Miller | Jan 23, 2019 02:54PM ET
Summary:
- IBM (NYSE:IBM) soared 10% higher on Wednesday morning, after posting earnings that beat Wall Street expectations.
- The stock’s market cycles point to a bit more upside and then a pullback, as its declining phase approaches.
The company reported earnings per share of $4.87 and total revenue of $21.76 billion, above analyst estimates of $4.82 and $21.75 billion. Management forecast its fiscal year revenue at $13.90, which was also above expectations.
With cloud revenue up 12 percent, CEO Ginni Rometty explained that. “We returned to full-year revenue growth, reflecting growing demand for our services and leadership solutions in hybrid cloud, AI, analytics and security,"
With regard to IBM’s market cycles, we can see that it is in the rising phase of its current minor cycle, with the declining phase of the intermediate cycle in sight. We previously saw IBM as in a negative pattern, but it is now repairing itself. Nearing resistance, we expect the stock to pull back from around $136, with a better buying opportunity coming in late March or April.
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel .
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