This Tech Stock Has Plenty of Fuel Left in Its Tank

IBM (NYSE:IBM) stock staged a bullish reversal after slipping to an Oct. 23, post-earnings low near the 50-day moving average. There was follow-through buying the following session, amid reports of quantum computing algorithm progress. Shares then proceed to break out above the $296 level, completing a bullish cup and handle pattern that targets $355.

 

Analysts remain skeptical of IBM, with 14 of the 22 brokerage firms in coverage sporting a tepid "hold" or worse rating. This means there is plenty of room for upgrades, which would boost the shares. It’s also worth noting that, based on Friday’s options prices, our recommended option doubles before the pattern’s target.
 
Our recommended January 16, 2026 call has a leverage ratio of 8.3 and will double on a 12% rise in the underlying equity.