10 Stocks That Analysts Are Talking About

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1. International Business Machines Corporation (NYSE:IBM)

International Business Machines Corporation is a leading integrated solutions and services provider that operates through financing, software, infrastructure, and consulting segments. The software giant was boosted by Bank of America analyst Wamsi Mohan with a target price hike from $250 to $260 while reiterating the Buy rating.

The investment thesis for IBM revolves around its safety and reliability as a dividend stock. Its near-term prospects make it an ideal choice for a defensive portfolio. The company will announce its Q4 earnings next week along with many other tech giants. While the earnings are expected to be in line or slightly better than estimates, it is the future guidance that continues to impress investors.

The company’s software segment is likely to grow at just under a double-digit growth rate, well supported by a mid-single-digit growth rate for consulting and a 1% growth rate for infrastructure. This growth should continue till 2028, which adds to the reliability of the stock as an investment.

IBM is not on our latest list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held IBM at the end of the third quarter which was 54 in the previous quarter. While we acknowledge the potential of IBM as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as IBM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure: None. This article was originally published at Insider Monkey.

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