The Unlikely Superstar: International Business Machines Corp. (IBM)

International Business Machines Corp. (NYSE: IBM) has come across as a very stable stock.

IBM closed year 2009 by touching a 10-years high mark. Toni Sacconaghi of Sanford C. Bernstein said that IBM has executed well during the past and is likely to perform well in 2010. In the past decade, IBM has almost trebled its EPS from $4.5 to $11 this year. S&P index has increased its earnings from $56 to $78 during the same time period. Although IBM is expected to post only 3% revenue growth this year, its main strength comes from its solid earnings. On the basis of P/E, IBM stock is still a cheap buy.