I am assigning International Business Machines Corporation (NYSE:IBM) a positive risk/reward rating based on the company’s strategic realignment toward a synergistic, growth-focused business portfolio, the resulting higher valuation multiple potential, and its deeply discounted relative valuation. The risk/reward tradeoff is bolstered by IBM trading near strong long-term technical support levels. Additional downside protection is provided by the company’s 5.3% dividend yield.
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