Wall Street Warnings on IBM and Universal Health Services
When Wall Street turns bearish on a stock, it's worth paying attention. This is especially true for companies where analysts rarely issue grim ratings due to fears of losing business opportunities in other areas.
Taking this into account, StockStory suggests that investors should consider IBM (NYSE:IBM) as one stock where they should be greedy instead of fearful. With a history spanning over a century and once known for its iconic mainframe computers, IBM provides hybrid cloud computing platforms, AI solutions, consulting services, and enterprise infrastructure to help businesses modernize their operations.
However, there are concerns about IBM's growth potential due to its large scale, which limits the company's ability to grow compared to smaller competitors. Over the last five years, IBM has experienced below-average annual revenue increases of 4.3%, with projected sales growth of 4.1% for the next 12 months suggesting sluggish demand.
On the other hand, Zebra (NASDAQ:ZBRA) is a company that StockStory likes due to its existing business lines that can expand without risky acquisitions. The company's organic revenue growth averaged 13.8% over the past two years, and free cash flow margin jumped by 4.8 percentage points over the last five years, giving the company more resources to pursue growth initiatives or reward shareholders.