International Business Machines Corporation’s (NYSE:IBM) Business Is Yet to Catch Up With Its Share Price
When close to half the companies in the United States have price-to-earnings ratios (or “P/E’s”) below 17x, you may consider International Business Machines Corporation (NYSE:IBM) as a stock to potentially avoid with its 21.2x P/E ratio. Although, it’s not wise to just take the P/E at face value as there may be an explanation why it’s as high as it is.
International Business Machines certainly has been doing a good job lately as its earnings growth has been positive while most other companies have been seeing their earnings go backwards. It seems that many are expecting the company to continue defying the broader market adversity, which has increased investors’ willingness to pay up for the stock. If not, then existing…
