IBM (IBM) Agrees to Sell Software Assets to India’s HCL Technologies
On Thursday, IBM announced an agreement reached with India’s HCL Technologies Ltd. to sell them select IBM software assets for $1.8 billion, in line with Big Blue’s strategy to focus more on cloud computing.
Representing a total addressable market of more than $50 billion, the software assets in scope include products like Appscan for secure application development, BigFix for secure device management, Unica (on-premise) for marketing automation, Commerce (on-premise) for omni-channel eCommerce, Portal (on-premise) for digital experience, Notes & Domino for email and low-code rapid application development, and Connections for work stream collaboration.
Although the deal is expected to close by mid-2019, an existing licensing partnership between the two companies will continue for five of the products.
IBM has been striving to emerge as a leader in the hybrid cloud market for some time now, but its declining software sales weighed heavy on its latest quarterly revenue – which might have instigated IBM to go for this deal.
HCL, whose revenue from software services business rose about 21% in the second-quarter, plans to further strengthen its position in the software services market after this acquisition.
Payable entirely in cash including earn-out, HCL plans to fund this deal mostly through internal accruals but may also include debt worth $300 million. The deal also marks the largest ever acquisition by any Indian IT company and is expected to give HCL access to a clientele of more than 5,000 customers.
IBM's RSI Oscillator ascends from oversold territory
The RSI Oscillator for IBM moved out of oversold territory on February 25, 2026. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 24 similar instances when the indicator left oversold territory. In of the 24 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 54 cases where IBM's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for IBM just turned positive on March 04, 2026. Looking at past instances where IBM's MACD turned positive, the stock continued to rise in of 37 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where IBM advanced for three days, in of 369 cases, the price rose further within the following month. The odds of a continued upward trend are .
IBM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on February 10, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on IBM as a result. In of 76 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
IBM moved below its 50-day moving average on February 03, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where IBM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for IBM entered a downward trend on March 04, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.047) is normal, around the industry mean (9.553). P/E Ratio (22.018) is within average values for comparable stocks, (44.530). IBM's Projected Growth (PEG Ratio) (2.298) is slightly higher than the industry average of (1.259). Dividend Yield (0.027) settles around the average of (0.026) among similar stocks. P/S Ratio (3.446) is also within normal values, averaging (26.716).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. IBM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a manufacturer of various computer products through the use of advanced information technology
Industry InformationTechnologyServices
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