Equity Clock

Arithmetic Average Seasonal Chart

Geometric Average Seasonal Chart

IBM Relative to the S&P 500

IBM Relative to the Sector

% of Revenue Generated in Each Quarter

% of Free Cash Flow Generated in Each Quarter

% of Net Income Generated in Each Quarter

Seasonal Chart Analysis

Analysis of the International Business Machines (NYSE:IBM) seasonal charts above shows that a Buy Date of July 2 and a Sell Date of October 15 has resulted in a geometric average return of 1.71% above the benchmark rate of the S&P 500 Total Return Index over the past 20 years. This seasonal timeframe has shown positive results compared to the benchmark in 15 of those periods. This is a good rate of success and the return strongly outperforms the relative buy-and-hold performance of the stock over the past 20 years by an average of 7.52% per year.

The seasonal timeframe correlates Poorly with the period of seasonal strength for the Technology sector, which runs from October 9 to February 15. The seasonal chart for the broad sector is available via the following link: Technology Sector Seasonal Chart.

IBM looks to be a part of every aspect of an enterprise’s IT needs. The company primarily sells software, IT services, consulting, and hardware. IBM operates in 175 countries and employs approximately 350,000 people. The company has a robust roster of 80,000 business partners to service 5,200 clients–which includes 95% of all Fortune 500. While IBM is a B2B company, IBM’s outward impact is substantial. For example, IBM manages 90% of all credit card transactions globally and is responsible for 50% of all wireless connections in the world.

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Stocks mentioned in this post: IBM