IBM Stock Good Value On AI Revolution

IBM stock is trading at a P/E of 13.2 and a Forward P/E of 11.2.

The stock looks like a good setup on the chart:

ibm stock

The large players volume is starting to round up and the Twiggs Money Flow confirms IBM stock is being accumulated at the current price.

IBM is the industry leader in AI with its Watson platform. The company markets Watson to the following industries:
Customer Engagement
Financial Services

Customer Engagement

AI is changing the way marketers, commerce and supply chain professionals engage customers. And Watson AI is leading the way with a proven solution to help you extract more value from your data. Deliver personalized experiences at every step of the customer journey. Enrich interactions, recommend with confidence, and assess and preempt disruptions. IBM published the YouTube video below explaining the Watson AI role in customer engagement.


IBM Watson Element, an IBM MobileFirst education app for iOS, provides teachers with a single 360-degree view of students by consolidating various academic, social, and behavioral data sources. These insights generate suggestions on how best to help each student so they receive targeted support in the classroom more quickly. IBM published the YouTube video below explaining the Watson AI role in education.

Financial Services

Adding Watson’s cognitive capabilities allows you to go beyond traditional rules-based policy and demographic views to a deeper understanding of customer profitability, preferences and lifecycle needs so that you can offer new, more personalized offerings and experiences. Watson can also help you transform your approach to managing risk and compliance so that you can stay ahead of an ever-changing regulatory environment. IBM published the YouTube video below explaining the Watson AI role in financial services.


Watson Drug Discovery

Life sciences researchers are using IBM Watson for Drug Discovery to make scientific breakthroughs and increase our knowledge of disease – faster than ever before. IBM published the YouTube video below explaining the Watson AI role in drug discovery.

Watson for Oncology

Bringing confident decision-making to oncology, provide evidence-backed cancer care to each patient, by understanding millions of data points. In a double-blinded study, the doctors at Manipal Hospitals found that Watson was concordant with the tumor board recommendations in 90 percent of breast cancer cases. The study was presented at the San Antonio Breast Cancer Symposium. IBM published the YouTube video below explaining the Watson AI role in oncology.

Watson For Social Programs

Health and human services professionals are frequently confronted with significant challenges. At IBM Watson Health, we believe passionate professionals must be freed from the obstacles, siloes and unnecessary complexities that hold them back. Our solutions for Social Program Management provide full program lifecycle support from intake to outcomes, and enable cross-system collaboration and information sharing. Prebuilt, domain-specific business processes, data models, and rules are delivered through a modular platform that supports incremental implementation and hybrid cloud deployments. Embedded cognitive insights empower caseworkers to make better-informed decisions with speed and confidence. And IBM Design Thinking and Agile methods help put the focus where it needs to be; on the citizen and the professionals who serve them.


Watson IoT™ Platform understands the language of your industry. Explore how your unique needs become competitive differentiators. ABB is bringing its industry leading digital offering together with Watson IoT cognitive capabilities to unlock new value for customers in utilities, industry, transport and infrastructure.

Tractica forecasts that the revenue generated from the direct and indirect application of AI software is estimated to grow from $643.7 million in 2016 to $36.8 billion by 2025. This represents a significant growth curve for the 9-year period with a compound annual growth rate (CAGR) of 56.8%.

The chart below shows Tractica’s top 10 AI use cases in terms of revenue in 2025:

IBM is well positioned to benefit from the fact that investments in AI are expected to triple this year.

Investments in artificial intelligence are expected to triple this year.

From the Tractica data above, I think the ability of Watson AI to analyze images is going to be a huge source of money for the company.

According to IBM, there were roughly 800 million multislice exams performed in the United States in 2015 alone. Those studies generated approximately 60 billion medical images. At those volumes, each of the roughly 31,000 radiologists in the U.S. would have to view an image every two seconds of every working day for an entire year in order to extract potentially lifesaving information from a handful of images hidden in a sea of data.

Watson AI Health will soon be able to be trained by a database of billions of images, making it able to spot anomalous growths faster and with far more accuracy than a human ever could.

I like IBM for both a short-term and long-term trade. Short-term the stock is at a bargain as evidence by its hot P/E ratios. For more advanced traders, your brokerage account should let you go high margin on this trade but you need to time the trade right and remember, never let a winning trade become a losing one. IBM is a perfect swing trading stock for beginner traders. The swing trade strategy in IBM stock is to buy the dips and sell the tops. If you get a swing wrong and are not on margin, you can hold through the swing for the next leg up.

IBM In the News

Author: Lance Jepsen

For ethical purposes, I try not to hold any position in any stock I profile on unless specifically stated in the article. Owner of Seasoned entrepreneur, investor, and writer. I love God, family, country, stock trading, economics, and helping people learn how to trade.

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