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Tech Stocks to Buy for Healthcare Riches: International Business Machines (IBM)
International Business Machines Corp. (NYSE:IBM) may seem like an odd choice. Not only is it a general-purpose tech operator that caters to many industries, but it’s a struggling general-purpose tech operator. IBM has posted 18 consecutive quarterly declines in revenues!
So, why IBM?
Well, healthcare actually should be a major catalyst that returns IBM to growth. IBM has invested huge amounts of money into Watson, its sophisticated artificial intelligence (AI) platform. Watson Health alone has more than 7,000 employees that work on categories including imaging, oncology, life sciences and value-based care.
IBM has already created made some major achievements. For instance, researchers at the University of Tokyo announced that Watson helped with a medical breakthrough for the diagnosis and treatment of a rare form of leukemia. This was actually the world’s first example of AI being used in such a way.
In fact, IBM thinks that Watson could help transform healthcare systems as well. Just look at a recent partnership with the Finnish government, which will use the technology to help improve doctor care.
“Their vision is to build an open healthcare ecosystem, based on compliant and efficient utilization of healthcare data,” IBM CFO Martin Schroeter says. “So Finland will put their healthcare data on our Watson Health cloud.”
IBM stock currently trades at value levels, including a forward price-to-earnings ratio of just 11. Meanwhile, IBM yields a robust 3.6%.
In other words, IBM is offering investors several possibilities for upside from here.
Source: Investor Place