As a tech trend, quantum computing, a new and innovative way of processing information much more efficiently than traditional models, comes in and out of favor with investors. That hasn’t stopped a number of startup and old companies alike from working in the space.
Yet one company that’s been a recent laggard in tech is now leading the way. And it could lead to a renewed surge in lackluster share prices.
The company is International Business Machines (IBM). The tech giant best known for computer mainframes has built up a research division with 3,000 employees, and is making strides towards the potentially massive innovation of cloud computing.
Shares had been trending higher over the past few months, but have sold off in recent weeks. The stock is now about flat for the year, but looks attractive at 10 times forward earnings and as a company with massive tech growth potential.
Action to take: Investors may want to consider shares here for a retirement account, as the company has continued to maintain and grow a dividend that currently yields 5.6 percent.
Traders might like the April $140 calls. Last going for about $1.85, the options provide upside potential for a move higher in shares from here. A move higher in shares can likely lead to high double-digit to low triple-digit profits in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.