Summary
Strategic Imperatives will drive revenue growth over the coming years.
The company returns a lot of cash to its owners and offers an attractive dividend yield.
Shares look inexpensive and provide a solid total return outlook.
IBM (IBM) has been in a turnaround mode, and shares have not done much since the share price peaked in 2013. Persistent revenue declines were a headwind in the past, and seemingly endless restructuring efforts hurt GAAP profitability.
Thanks to the strength of its Strategic Imperatives, IBM has been able to reverse the trend of declining revenues during the last two quarters. Going forward, ongoing growth from its cloud business as well as other tailwinds should allow for at least some profit growth.
