IBM’s Software Business Is Picking Up Speed. Here’s Why It’s Time to Grab IBM Stock on the Dip.

International Business Machines (IBM) has spent the last couple of years trying to convince investors it’s more than an old-school technology giant. A quarter ago, IBM’s software story looked less comfortable, with delayed deals and timing issues clouding the outlook. The third quarter brought better news as the software business accelerated, showing strength across key areas, including Red Hat and data software.

Yet, IBM shares remain well below their $332.46 peak and are down 14% so far this year. If this momentum continues into the coming quarters, investors buying the dip could enter before the market fully recognizes the improvement in IBM’s software business.

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